Despite ranging between 0.6539/0.6476, AUD/USD finished Wednesday pretty much unmoved, treading water a touch off Tuesday’s low 0.6462.
Technical headlines saw H4 recently knock on the door of 0.65, though is also nursing losses off March’s opening level at 0.6464. South of this band, room to explore lower ground to 0.64 is visible. This is largely due to both weekly and daily timeframes suggesting lower levels after fading weekly resistance parked at 0.6677. Weekly support at 0.6359 is seen as the next downside target on the higher timeframes.
It may also interest some traders to note the relative strength index (RSI) is seen loitering a few points ahead of oversold levels, after reaching a low of 27.00.
According to the primary trend and higher-timeframe structure, the outlook is not bright for AUD/USD.
As a result, a H4 close below 0.6464 may be on the radar for some traders, with the possibility of an extension to 0.64 and maybe beyond. Breakout traders may feel the evidence provided justifies a sell on the breakout candle’s close; others, however, may seek a retest motion off 0.6464 before committing to a position. This, of course, is trader dependent.
Disclaimer: The information contained in this material is intended for general advice only.