- AUDUSD hit a fresh 10-month bottom of 0.6356 last week
- Regained some ground but clearly not out of the woods yet
- Momentum indicators suggest that the rebound could strengthen
AUDUSD had been in an aggressive decline following a double top pattern in mid-July, with the pair posting consecutive multi-month lows. Even though the price managed to find its feet at a fresh 10-month bottom and recoup some losses, the road to recovery seems rather long.
Should the negative pressures wane, the price could ascend to face the May support of 0.6457, which could now serve as resistance. Conquering this barricade, the bulls might attack the recent resistance zone of 0.6521. Further upside attempts could then stall at a couple of previous support regions such as 0.6563 and 0.6594.
Alternatively, bearish actions could send the price to re-test the 10-month low of 0.6356. A break beneath that zone could trigger a decline towards the November 2022 bottom of 0.6271. If that hurdle also fails, the spotlight may turn to the October 2022 low of 0.6169.
In brief, AUDUSD appears to have found its footing, but it has not yet recovered significant ground. For the bulls to regain confidence, the pair must at least reclaim the 50-day simple moving average (SMA).
