Current trend

Since the beginning of the year, the AUD/USD pair has been moving within the wide downward channel: during the week, the price reached its lower border around 0.6286 (Murrey level [–1/8]), after which there was a rollback to 0.6375. To develop significant growth, the quotes need to rise above the middle line of Bollinger bands (0.6408) and 0.6469 (Murrey level [2/8]), after which the movement will continue to the area of 0.6591 (Murrey level [4/8]) and 0.6713 (Murrey level [ 6/8]). The key “bearish” level is 0.6286, the breakdown of which will allow the asset to resume its decline along the lower border of the downward channel to 0.6225 (Murrey level [–2/8]) and 0.6164 (Murrey level [–2/8], H4).

Technical indicators confirm the continuation of the downward trend: Bollinger bands reverse downwards, and the MACD histogram is increasing in the negative zone. Stochastic has reached the oversold zone and may reverse upward, which does not exclude a limited upward correction.

Support and resistance

Resistance levels: 0.6469, 0.6591, 0.6713.

Support levels: 0.6286, 0.6225, 0.6164.

Trading tips

Short positions may be opened below 0.6286 or when the price turns around 0.6408 with the targets at 0.6225, 0.6164 and stop losses at 0.6335 and 0.6455, respectively. Implementation time: 5–7 days.