You are here: Home > articles > Forex > Technical Analysis – AUDUSD extends retreat below rectangle, 2023 lows in sight
Technical Analysis – AUDUSD extends retreat below rectangle, 2023 lows in sight
August 3, 2023 8:29 amVideo
Latest News
- Analysis of GBP/USD on April 26th. The pound trades on Friday without changes April 26, 2024
- USD/JPY: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- GBP/USD: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- EUR/USD: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- GBP/USD: trading plan for the US session on April 26th (analysis of morning deals). The pound attempted, but it didn’t go April 26, 2024
- EUR/USD: trading plan for the US session on April 26th (analysis of morning deals). The euro continues to rise April 26, 2024
- Trading Signals for GOLD (XAU/USD) for April 26-29, 2024: buy above $2,324 and sell below $2,352 (21 SMA – 6/8 Murray) April 26, 2024
- Technical Analysis – AUDUSD set to complete best week of the year April 26, 2024
- Will Apple finally drop its AI hint? – Stock Markets April 26, 2024
- Bitcoin slips as markets pare back Fed rate cuts – Crypto News April 26, 2024
- EUR/USD. April 26th. Bulls continue to advance after the GDP report April 26, 2024
- Can Chinese PMIs solidify the economy’s recovery prospects? – Preview April 26, 2024
- Weekly Forex Outlook: 26/04/2024 – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too April 26, 2024
- XM’s Lombok Collaboration: Brightening Futures April 26, 2024
- Week Ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too April 26, 2024
- Market Comment – Yen keeps sinking after Bank of Japan decision April 26, 2024
- Fed faces dilemma amid sticky inflation and slowing economy – Preview April 26, 2024
- USD/JPY: trading tips for beginners for European session on April 26 April 26, 2024
- GBP/USD: trading tips for beginners for European session on April 26 April 26, 2024
- EUR/USD: trading tips for beginners for European session on April 26 April 26, 2024
AUDUSD has been in a steady decline after its latest bullish breakout from the rectangle encountered resistance at 0.6898, validating a double top pattern. Moreover, in the near term, the pair has exited the sideways pattern to the downside, while its break beneath both the 50- and 200-day simple moving averages (SMAs) has painted a gloomy technical picture.
The momentum indicators currently suggest that bearish forces are intensifying. Specifically, the RSI is negatively charged below its 50-neutral mark, while the MACD is declining further below zero and its red signal line.
Should the retreat resume, the price could initially test the 2023 bottom of 0.6457. Slicing through that region, the pair might descend towards levels not seen in months, where the September 2022 low of 0.6362 could curb further downside attempts. A break below the latter could open the door for the November 2022 low of 0.6271.
Alternatively, if the pair manages to halt its decline and storm back higher, the previous support regions of 0.6563 and 0.6584 could prove to be the first hurdles for the bulls to conquer. Surpassing the latter, the price might challenge the 50-day SMA, currently at 0.6698. Further advances might then cease at 0.6817, which is the upper border of the rectangle.
In brief, AUDUSD has dipped below its rangebound pattern amid intensifying negative momentum. A failure to re-enter the range could lead to more severe losses, but traders should not rule out a potential rebound as the pair is approaching oversold conditions.
Related Posts: