During today's Asian trading session, the Australian dollar sharply strengthened after the release of positive macroeconomic data from China, which turned out to be better than forecasted. AUD/USD reached an intraday high and a 4-day high at 0.6392. Furthermore, the Australian dollar has been actively gaining strength in recent days in the major currency pairs, indicating its current resilience.
Nevertheless, AUD/USD remains within the zone of medium and long-term bearish trends, below key resistance levels at 0.6980 (200 EMA on the weekly chart) and 0.6605 (200 EMA on the daily chart).
A breakdown of the important short-term support level at 0.6360 (200 EMA on the 1-hour chart) and today's low of 0.6350 could signal a resumption of short positions in AUD/USD, with the nearest target at the local support level of 0.6285. In the event of further decline, the pair will move inside the downward channel on the weekly chart towards its lower boundary and levels of 0.6200 and 0.6170 (2022 lows).
In an alternative scenario, the price may break through the important resistance level at 0.6430 (50 EMA on the daily chart) and 0.6454 (23.6% Fibonacci level correction in the downward wave from 0.9500 to 0.5510), which could trigger further corrective rise with targets at medium-term resistance levels of 0.6655 (144 EMA on the daily chart) and 0.6605 (200 EMA on the daily chart).
The first signal here could be the breakout of today's high at 0.6392. However, only a break of key resistance levels at 0.6980 (200 EMA on the weekly chart) and 0.7040 (38.2%Fibonacci level ) will take AUD/USD into the zone of the long-term bullish market.
Support levels: 0.6360, 0.6350, 0.6335, 0.6300, 0.6285, 0.6200, 0.6170
Resistance levels: 0.6403, 0.6430, 0.6454, 0.6500, 0.6555, 0.6605, 0.6635, 0.6700, 0.6800, 0.6840, 0.6880, 0.6900, 0.6980, 0.7000, 0.7040
