In yesterday’s trading session, AUD/USD dipped below the October low at $0.627. Meanwhile, the momentum indicators hint at an oversold market. The currency pair has the potential to test the broken support before the
downtrend resumes.
AUDUSD Technical Analysis – 19-December-2024
The Australian dollar is in a strong bear market against the Greenback, below the 75-period simple moving average. As of this writing, the currency pair erased %0.23 of its yesterday’s losses, bouncing off $0.62 resistance, backed by the lower line of the bearish flag.
Expect Market Consolidation Toward $0.627
As for the technical indicators, Stochastic and RSI 14 depict 12 and 25 in the description, respectively, hinting at an oversold market. Therefore, the market expects a consolidation phase toward upper resistance levels.
In this scenario, the October low at $0.627 could be revisited and tested as resistance. Retail traders and investors should monitor this level for bearish signals, such as candlestick patterns, for a strategic sell entry.
Please note that the bear market should be considered valid as long as AUD/USD is below the $0.640 resistance, backed by the 75-period SMA. That said, the next bearish target could be $0.597.