FxNews—The Australian dollar lost 1% of its value against the American dollar in today’s trading session, trading at approximately $0.647. The new bearish wave was anticipated due to the Stochastic’s overbought signal on November 29.
Watch AUDUSD Next Bearish Target at $0.634
The AUD/USD primary trend should be considered bearish because the prices are below the 50-period simple moving average. However, the RSI 14 nears 30, meaning the Greenback could become overpriced soon.
That said, the immediate support is at $0.641. If the currency pair dips below this support, the downtrend will likely extend. In this scenario, the next bearish target could be the August 2024 low at $0.634.
Please note that the downtrend should be invalidated only if bulls pull the prices above $0.653, backed by the descending trendline.