Ideas For AUD/USD:
The AUDUSD pair is currently undergoing a break in its bullish market structure, largely driven by a counter-trend correction in the US dollar, influenced by fundamental factors. As the pair approaches a significant liquidity area, it faces substantial resistance.
Breaking through the 0.6695 zone on the first attempt could be challenging, as this area harbors a high concentration of limit orders. Consequently, we may witness a false break of the support level at 0.6699 (H4) followed by a rebound. Previously, there has been a shift in market character towards a bearish sentiment. If the pair rebounds from the support, it could recover to the 0.5-0.7 Fibonacci levels, from which the decline might resume towards key support.
At this crucial support level, two scenarios could unfold. In a weak market, the downtrend may persist. However, if the broader market outlook shifts (e.g., the dollar entering a bear market), AUDUSD could enter a recovery phase.
Key resistance levels to watch are 0.674 and 0.676, while support levels are 0.6699 and 0.6686.
From a technical perspective, we are anticipating a pullback to the specified Fibonacci zone (0.5 - 0.7). It will be important to monitor the price action closely around these levels. A retest of the support could increase the likelihood of a breakout and further decline. However, strong bullish momentum may counter the bearish pressure, potentially leading to renewed growth.
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