AUDUSD → Change of mood and retest of a strong level

19 Jan

AUDUSD broke the uptrend earlier and is testing the strong historical level of 0.65800. Against the backdrop of a rising DXY, the Aussie could lose ground and head towards downside targets.



The dollar is strengthening and may show growth for the second week in a row thanks to the signs of stability of the American economy and cautious comments of central bankers' representatives on rate cuts, the index is seeing a clear recovery phase, which negatively affects the currency pair.
Technically, AUDUSD breaks the level of 0.65800 and tests it as resistance. There are 2 scenarios that can develop in relation to the level: the first one includes the continuation of the correction if the price breaks 0.65800 and consolidates above it. The target will be the resistance at 0.6666. And the second scenario is the bears' task to hold this level against the background of changing market sentiment. From 0.65800 a decline to 0.6523 is possible with the subsequent breakout and fall to 0.6352. Moving averages show a downward signal.

Resistance levels: 0.65800
Support levels: 0.6523

The trend is changing, bears are more serious, which may affect the pair's pricing. With greater probability I am waiting for the realization of the second scenario.

Regards R. Linda!