Bearish AUDUSD tests $0.62 critical support after prices fail to surpass the %50.0 Fibonacci retracement level. A Dip below $0.62 can escalate the downtrend, targeting $0.597.
AUDUSD Technical Analysis – 27-December-2024
The Australian currency trades bearish against the American dollar, at approximately $0.621, and has lost 2.25% of its value since mid-December. However, the downtrend stalled at $0.62 critical support.
As for the technical indicators, the Awesome Oscillator shows bullish divergence and the Stochastic Oscillator hovers in oversold territory. This means it is risky to join the bear market because the U.S. dollar is overpriced, at least in the short term.
Overall, the technical indicators suggest that while the primary trend is bearish, the AUD/USD trend has the potential to start a consolidation phase toward upper resistance areas.
Bearish AUDUSD Tests $0.62 Critical Support
The immediate support is at $0.62. If this level holds, a new bullish wave could emerge. If this scenario unfolds, AUD/USD prices could rise toward the 50% Fibonacci level at $0.627. Furthermore, if the buying pressure persists, the currency pair could target the 78.6% level at $0.631.
Please note that these levels ($0.627 and $0.631) provide a decent ask price to join the bear market. Therefore, retail traders and investors should monitor them closely for bearish signals, such as candlestick patterns.
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The Bullish Scenario
The critical resistance level between the bear and bull markets is $0.634. Below $0.634, the AUD/USD trend outlook remains bearish, and if bulls pull the prices above it, the downtrend should be invalidated.
In the bullish scenario, the Australian dollar can potentially rise to $0.645.
AUDUSD Support and Resistance Levels – 27-December-2024
Traders and investors should closely monitor the below AUD/USD key levels to make informed decisions and adjust their strategies accordingly as market conditions shift.
| AUDUSD Support and Resistance Levels – 27-December-2024 | |||
|---|---|---|---|
| Support | $0.620 | $0.597 | $0.55 |
| Resistance | $0.627 | $0.631 | $0.634 |