The AUDUSD went up during the Asian session, hitting a high of 0.66683 on Friday. However, this level acted as resistance, causing a slight pullback. This drop indicates a possible double top pattern, giving sellers an advantage in the ongoing bullish trend that began on August 22. Sellers are looking to keep their stop-loss orders just above 0.6668 while aiming for a more significant drop.

Sellers Aiming for Targets

Staying below 0.6668 gives sellers short-term power, but they need to continue building their position. The first target for a downward move is the 100-hour moving average at 0.66293, which supported prices during Thursday when US job numbers disappointed. If the price falls below the 100-hour moving average, the focus will shift to the 200-hour moving average at 0.65917. On the other hand, breaking above 0.6668 would invalidate the double top pattern, giving an edge to buyers and possibly pushing them to test the November 2024 high of 0.6687. This high is also in line with a trendline on the daily chart, making it a crucial target for upward movement. We are monitoring the AUDUSD as it tests the resistance near 0.6668, a level that has remained strong today. This rejection is forming a potential double top on the charts, signaling a clear opportunity for traders. Those looking to short the market may enter positions with a tight stop-loss just above this key resistance.

Bearish View Backed By Economic Data

This bearish outlook is supported by recent economic data from Australia. The quarterly inflation rate in August 2025 fell to 3.1%, slightly lowering expectations for another RBA rate hike. Meanwhile, comments from US Federal Reserve officials highlight their commitment to fighting inflation, suggesting the US dollar may continue to strengthen. These factors indicate that the current resistance may hold. The first important level to monitor on the downside is the 100-hour moving average at 0.66293. This level provided support during last Thursday’s trading session before a rally due to weaker US jobless claims. A solid break below this moving average would indicate increasing selling pressure. If sellers breach that initial support, their next target will be the 200-hour moving average at 0.65917. Hitting this level would indicate a significant change in market sentiment, similar to trends we saw in late 2023 when a persistent hawkish Fed led to strong US dollar performance. However, we need to be ready for a bullish breakout if sellers can’t maintain their position. A substantial move above the 0.6668 resistance would nullify the double top pattern and put buyers in control. This shift could be aided by strong commodity prices, as iron ore has recently risen above $120 per ton. If prices break higher, the main target would be the November 2024 high at 0.6687. This level is critical as it aligns with a significant upward trendline on the daily chart. A move to this area would confirm that the uptrend that began in late August 2025 is still going strong. Create your live VT Markets account and start trading now.

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