The AUD/USD pair attracts fresh selling near the 0.6640-0.6645 area on Friday and extends its intraday descent through the first half of the European session. The downward trajectory drags spot prices to the 0.6580-0.6575 region, or the lowest level since March 10, and is sponsored by resurgent US Dollar (USD) demand. Technical selling below the 0.6600 round-figure mark aggravates the bearish pressure and contributes to the AUD/USD pair's steep intraday decline. Spot prices now move back closer to the YTD low touched in March.

Downward momentum is beginning to build and AUD is likely to edge lower in the coming days. However, any decline is likely to face solid support at the year-to-date low near 0.6565. All in all, AUD is likely to stay under pressure as long as 0.6670 (no change in ‘strong resistance’ from yesterday) is not breached. Looking ahead, if AUD breaks clearly below 0.6565, the focus will shift to the round-number support level of 0.6500

However, the 100-DMA and the top line of the aforementioned channel, respectively near 0.6795 and 0.6835, can challenge the AUD/USD bulls afterward.

Should the Aussie pair buyers manage to keep the reins past 0.6835, they can retake the driver’s seat.

Meanwhile, the 38.2% Fibonacci retracement level of 0.6595 restricts the immediate downside of the AUD/USD pair. Following that, the yearly low marked in March around 0.6565 will be in the spotlight.

If the AUD/USD bears manage to conquer the 0.6565 support, multiple levels near 0.6530-25 can challenge the Aussie pair’s downside before giving control to the sellers.

Buying Aussie on short term based on correction

Apr 30 2023