- AUD/USD has fallen back below 0.6550 amid broad-based USD demand.
- The pair has invalidated the bullish breakout confirmed on Wednesday.
AUD/USD is losing altitude with markets buying the safe-haven US dollar on China's decision to impose a controversial security law on Hong Kong.
The AUD/USD pair is now trading near 0.6540, representing a 0.36% decline on the day. The pair's drop below 0.6550 has invalidated the bullish symmetrical triangle breakout confirmed by Wednesday's 0.96% gain.
The bull failure would be confirmed if the pair ends Friday below 0.6550. That will likely invite stronger chart-driven selling, possibly leading to a re-test of support at 0.64, which restricted downside on May 14 and May 15.
Chart analysts consider failed breakouts as a powerful bearish reversal signal.
On the higher side, 0.66 is the level to beat for the bulls. The pair failed to close above that level remained elusive on Wednesday and Thursday.
- R3 0.6647
- R2 0.6624
- R1 0.6594
- PP 0.6571
- S1 0.6542
- S2 0.6519
- S3 0.6489
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.