AUDUSD has been in a stable downtrend for over a week now. The overall strength of the Dollar has also been reflected in the Aussie. After the resistance at 0.7075 could not be conquered, the bulls closed their long positions and since then the price knows only one direction – downwards. In addition, the exhausted stochastic has delivered a fresh short signal. Of course, the bears have confirmed this and the dynamics on the downside have increased.
No turnaround in AUDUSD yet?
The way the situation looks at the moment, there is still no turnaround in sight. The price is currently struggling with support at 0.6930. This hurdle does not seem to be very strong and the probability increases that we will see further falling prices at the end of the week. The next target is to take support at 0.6910. Here is the last significant low, which will slow down the fall for now. Should there be an increased volatility in this area, an avalanche of stops can be triggered. In order for this scenario to occur, however, new impulses are needed in the market. Whether we will receive this before the weekend is questionable. However, if it works, we see the next price target as 0.6895. Here the short movement should end for the time being.
Should there be a counter-reaction in this session, AUDUSD has potential to reach 0.7002 on the upside. This level is considered a strong resistance and is unlikely to be attacked today. However, if you want to buy the Aussie (AUDUSD), you should be aware that it is against the trend and therefore increases your risk. AUDUSD is one of the currency pairs that likes to develop long stable trends. If you trade against the big direction, you should always be cautious and have strict money management. It has often been confirmed that those who act undisciplined here can strain their capital and their nerves unnecessarily.
As always, it is also advisable to follow Gold price developments in parallel. The other majors, especially the EURUSD and GBPUSD, may also affect the Aussie today. It remains exciting to see whether the US Dollar will continue to strengthen at the end of the week.