The AUD/USD has been declining this week, moving past important support levels. Recently, it fell below the 50% retracement level and tested a swing level at 0.62348.
Today, the pair continued to decline, breaching the 61.8% retracement at 0.62097 and entering a target zone between 0.6196 and 0.6202. This breakdown suggests potential for continued selling pressure.
If the pair manages to find support near the 61.8% retracement, a bounce could target the levels that were recently broken. Upside resistance includes the swing level at 0.62348 and the 50% retracement at 0.62474.
The ongoing decline in the Australian dollar against the US dollar has brought it firmly into lower price levels. After slipping through the midpoint of its latest move, it found temporary footing at a prior support level. That area initially attempted to hold back further losses but was eventually breached.
With continued momentum, today’s session saw the pair move under another measured retracement level, reinforcing bearish sentiment. As it trades within a narrow range just below this threshold, there is little in the way of technical barriers to prevent further downside. However, traders will be watching closely for signs of exhaustion in selling pressure. Should stabilisation occur here, a recovery could see previous support zones tested from below.
A potential rebound would put attention back on prior swing levels. The first obstacle would be the spot where selling accelerated most recently. Beyond that, price action could aim for a retest of the midpoint that previously failed to hold. This would serve as an important test of whether bearish control remains firm or if buyers can gain back some ground.
Given the movement over the past sessions, traders may want to keep a keen eye on how price behaves around these levels. A sustained presence below the recent break could reinforce ongoing downward pressure. Conversely, a shift back above breached zones might indicate that sentiment is beginning to turn, at least in the short term.
As we assess what’s ahead, it becomes clear that market participants should be prepared for continued movement in either direction. The recent trajectory highlights areas that have drawn attention from both sellers and buyers, providing useful reference points for those examining potential trade setups.
