Analysts suggest the AUD/USD pair could drop to 0.6355. Recently, the AUD fell to 0.6446 but then bounced back. While there was a temporary rally, a decline below 0.6400 seems unlikely without stronger momentum. Key resistance levels are at 0.6465 and 0.6480. If these are breached, it could ease the current downward pressure. In the next few weeks, the AUD is expected to trade within a certain range. Initially, this is between 0.6430 and 0.6550. However, for a move towards 0.6355, we need a close below 0.6430. This situation will hold unless the strong resistance level at 0.6505 is broken. Recent price movements showed a dip below 0.6430, but whether there will be further declines depends on sustained pressure.

Consolidation Likely

The recent action around the 0.6446 level showed a slight dip before a brief rally. This movement didn’t test new support levels or change the overall outlook significantly. It seems the pair is leaning toward consolidation rather than dramatic changes. Although there was brief weakness below 0.6430, buying interest came back quickly, indicating fading momentum below this level. The resistance zone between 0.6465 and 0.6480 has held back further gains multiple times and remains a key barrier. If this area is convincingly broken, we might see a temporary easing of the selling pressure from recent sessions. Until this happens, the resistance remains strong. Support below 0.6400 is unlikely to be tested without a significant increase in volatility, which we haven’t observed yet. For the AUD to move toward 0.6355, it would need to drop below 0.6430, and so far, the market hasn’t shown follow-through. We remain cautious about downward movement unless sellers can hold below 0.6430 for more than one session, ideally with confirmation through lower intraday highs.

Range Guidelines

The highlighted range between 0.6430 and 0.6550 still applies. It’s narrow enough for short-term setups to develop but wide enough that we should be selective and not chase every movement. We see no reason for a clear directional bias unless 0.6505 is crossed or there’s a confirmed drop below 0.6430 with multiple daily closes. We’re watching these boundaries but see no urgency to act until the market shows clearer intent. In derivatives, positioning should remain tactical. Look to fade extremes within this range, especially near known rejection levels. Currently, there isn’t enough conviction on either side to support breakout strategies. Keep an eye on momentum indicators and volume; significant shifts in these could signal an upcoming move. Until then, patience is essential. Create your live VT Markets account and start trading now.

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