As of writing, AUD/USD is trading near 0.6413, falling towards the support at 0.6382 (200 EMA on the 1-hour chart). Its breakdown will confirm the resumption of downward dynamics, although short positions can be opened already in the market, limiting the loss with a stop loss above 0.6480.
Given the strong bearish momentum and the overall downward momentum in AUD/USD, we can expect further declines deeper into the descending channels on the daily and weekly charts.
In an alternative scenario, AUD/USD will once again attempt to break into the zone above the 0.6466 resistance level (200 EMA on the 4-hour chart). However, the target of this upward correction will be near the 0.6545 resistance level (local highs and 50 EMA on the daily chart). Higher growth is hardly to be expected yet.
Support levels: 0.6420, 0.6382, 0.6200, 0.6170, 0.5975, 0.5665, 0.5510
Resistance levels: 0.6455, 0.6466, 0.6500, 0.6545
Sell Stop 0.6380. Stop-Loss 0.6460. Take-Profit 0.6300, 0.6200, 0.6170, 0.5975, 0.5665, 0.5510
Buy Stop 0.6485. Stop-Loss 0.6430. Take-Profit 0.6500, 0.6545
The material has been provided by InstaForex Company – www.instaforex.com