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AUDUSD Bounces Off 2024 Low

  • AUDUSD hits its lowest level since mid-November
  • Although decline halts, rebound looks unconvincing
  • Momentum indicators remain tilted to the downside

AUDUSD has been in a constant decline after peaking at 0.6870 in December, breaking below both its 50- and 200-day simple moving averages (SMAs). This week, the price fell to a fresh two-month bottom of 0.6467 before recouping some losses, while the short-term oscillators still suggest that bearish forces are holding the upper hand.

Should bearish pressures persist, the price could revisit its 2024 bottom of 0.6467. A violation of that region could open the door for the August low of 0.6363. Sliding beneath that floor, the pair may descend towards the November low of 0.6337.

On the flipside, if the pair extends its near-term recovery, there is no prominent resistance until the 200-day SMA, currently at 0.6568. Further advances could then cease at the recent resistance of 0.6623 ahead of the 0.6689 hurdle. Conquering the latter, the bulls could attack the May peak of 0.6817.

Overall, AUDUSD dropped to its lowest level in two months as its short-term retreat shows no signs of easing. For the bearish sentiment to alter, the price needs to initially reclaim the 200-day SMA.

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