AUD/USD at a Key Support Level on the Weekly Chart
The AUD/USD pair has experienced a significant decline of nearly 11% without any substantial pullbacks since September 2024. It has now reached a crucial support level on the weekly chart at 0.6200.
This recent downward movement has been influenced, in part, by Donald Trump's return to the US presidency. His administration has traditionally prioritised a “putting America first” stance, pledging to reinvigorate the economy and support American industry.
Now, the pressing question is: Will the AUD/USD break through this support and continue its fall, or will it experience a bullish pullback in the coming days?
The AUD/USD is currently situated in a decisive region. A break below the support could pave the way for further declines, while a successful breach of the downtrend line could initiate a more significant upward movement.
Possible Bullish Scenario
The AUD/USD could enter a bullish trend if the price breaks above the high of the December 31 candle, approximately 0.6240.
Possible Target: The target could be set in the vicinity of the 38.2% Fibonacci retracement level, around 0.6470 (approximately 220 pips above the entry point).
Stop Loss: A suitable stop loss may be placed just below the support level on the weekly chart, at about 0.6150 (approximately 90 pips from the entry).
Alternative Scenario: Breakdown of Support
Conversely, if the price breaks below the support level on the weekly chart, it could signal a continuation of the downtrend, potentially driving the AUD/USD down to the 0.6000 mark within a few days.
Key Considerations
Investors should remain vigilant regarding upcoming macroeconomic data releases from both the US and Australia, as well as any initial decisions made by President Donald Trump following his return to office. These factors could significantly influence the direction of the AUD/USD pair in the near term.
Disclaimer
74% of retail investor accounts lose money when trading CFDs with this provider. Consider whether you understand how CFDs work and if you can afford the high risk of losing your money. Past performance is not indicative of future results. Investment values may fluctuate, and you may not recover your initial investment. This content is not intended for residents of the UK.
This recent downward movement has been influenced, in part, by Donald Trump's return to the US presidency. His administration has traditionally prioritised a “putting America first” stance, pledging to reinvigorate the economy and support American industry.
Now, the pressing question is: Will the AUD/USD break through this support and continue its fall, or will it experience a bullish pullback in the coming days?
The AUD/USD is currently situated in a decisive region. A break below the support could pave the way for further declines, while a successful breach of the downtrend line could initiate a more significant upward movement.
Possible Bullish Scenario
The AUD/USD could enter a bullish trend if the price breaks above the high of the December 31 candle, approximately 0.6240.
Possible Target: The target could be set in the vicinity of the 38.2% Fibonacci retracement level, around 0.6470 (approximately 220 pips above the entry point).
Stop Loss: A suitable stop loss may be placed just below the support level on the weekly chart, at about 0.6150 (approximately 90 pips from the entry).
Alternative Scenario: Breakdown of Support
Conversely, if the price breaks below the support level on the weekly chart, it could signal a continuation of the downtrend, potentially driving the AUD/USD down to the 0.6000 mark within a few days.
Key Considerations
Investors should remain vigilant regarding upcoming macroeconomic data releases from both the US and Australia, as well as any initial decisions made by President Donald Trump following his return to office. These factors could significantly influence the direction of the AUD/USD pair in the near term.
Disclaimer
74% of retail investor accounts lose money when trading CFDs with this provider. Consider whether you understand how CFDs work and if you can afford the high risk of losing your money. Past performance is not indicative of future results. Investment values may fluctuate, and you may not recover your initial investment. This content is not intended for residents of the UK.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.