The AUD/USD is falling sharply on Tuesday amid a stronger US Dollar and a mixed market sentiment. The pair is trading at 0.6627, the lowest level since April 11. It is testing a relevant support area at 0.6630.

the risk barometer remains within a short-term rectangle formation comprising multiple levels marked since the last Friday amid a steady RSI (14) line, below the median line of late.

However, a clear downside break of a fortnight-old ascending trend line and the 200-Hour Moving Average (HMA) joins the bearish MACD signals to keep Aussie bears hopeful.

That said, the stated trend continuation pattern’s lower line, close to 0.6665 of late, puts a floor under the AUD/USD prices, a break of which could quickly direct the sellers towards the monthly low of 0.6620.

In a case where the AUD/USD price remains bearish past 0.6620, the 0.6600 round figure and the yearly low marked in March around 0.6560 could lure the sellers.

On the flip side, the aforementioned rectangle’s top line, around 0.6710 at the latest, precedes the 200-HMA level of 0.6720 to restrict the short-term recovery of the AUD/USD pair.

Following that, the previous support line stretched from April 11, near 0.6725 can act as the last defense of the AUD/USD bears.

Should the AUD/USD buyers keep the reins past 0.6725, a one-week-old horizontal resistance area between 0.6770 and 0.6780 can challenge the upside momentum.

AUD/USD is getting ready to break through the lower border of the bullish channel. The instrument is going below the Ichimoku Cloud, which suggests a downtrend. A test of the lower border of the Cloud at 0.6705 is expected, followed by falling to 0.6565.

AUDUSD can gain strength if remained above the OB

Apr 25 2023