The AUD/USD pair continues to move downwards from the level of 0.6357. Yesterday, the pair dropped from the level of 0.6357 to the bottom around 0.6238. But the pair has rebounded from the bottom of 0.6357 to close at 0.6275.
The AUD/USD pair's outlook and further decline is expected with 0.6312 minor resistance intact. Current down trend should move from the last resistance levels of 0.6312, 0.6357 and 0.6394.
Firm break there could prompt downside acceleration to last bearish wave of 0.6238. Today, the first support level is seen at 0.6238, the price is moving in a bearish channel now. Furthermore, the price has been set below the minor resistance at the level of 0.6312, which coincides with the 23.6% Fibonacci retracement level. This resistance has been rejected several times confirming the veracity of a downtrend.
Additionally, the RSI starts signaling a downward trend. As a result, if the AUD/USD pair is able to break out the first support at 0.6238, the market will decline further to 0.6200 in order to test the weekly support 2.
Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 0.6312 with the first target at 0.6238 and further to 0.6200. Technical indicators are recovering from extreme oversold readings, holding far below their midlines, a sign that there's a long way ahead before a substantial recovery takes place.
Moving averages, in the meantime, maintain their bearish slope way above the current level. Furthermore, although the news is bearish for the Aussie, professional may not want to sell weakness, but rather following a rebound rally.
Additionally, some aggressive counter-trend buyers may be defending parity. In case a continuousion takes place and the AUD/USD pair breaks through the support level of 0.6200, a further decline to 0.6150 can occur which would indicate a bearish market. However, stop loss is to be placed above the level of 0.6431.
Signal :
According to previous events, the AUD/USD pair is still moving between the level of 0.6312 and the 0.6200 level (these levels coincided with the fibonnacci retracement levels 23.6% and last bearish wave). It should be noted that the 0.6312 price will act as a minor resistance on October 12, 2022. Therefore, it will be too gainful to sell short below 0.6312 and look for further downside with 0.6238, 0.6200 and 0.6150 targets. It should also be reminded that stop loss must never exceed the maximum exposure amounts. Thus, stop loss should be placed at the 0.6431 level today.
