AUDUSD Forecast: Sellers Take Control After Major Technical Breakdown

AUDUSD at a Critical Technical Crossroads

AUDUSD has reached a crucial technical juncture. Following a strong rally from mid-November lows, the Australian dollar faces its first major test of structural support. Sellers have regained short-term control, but a significant Fibonacci floor lies ahead.

Shift in Power

For the first time since mid-November, sellers pushed prices below both the 100-hour and 200-hour moving averages, reversing the bullish dominance of the previous weeks.

Resistance Ceiling

A key swing area from July between 0.66247 and 0.6635 has flipped from support to resistance, capping today’s post-CPI bounce.

Downside Target

The pivotal 'line in the sand' for buyers stands at the 38.2% retracement level of 0.6584. A failure to hold this level could open the doors to a more significant correction.

Sellers Take Control

Since the mid-November low of 0.6420, the AUDUSD experienced uninterrupted gains to a peak of 0.66851 last week. However, this momentum hit a wall yesterday, with prices dropping below key moving averages and a vital support zone.

Conclusion

AUDUSD is at a critical juncture where resistance and support are intersecting. The short-term trend appears to favor sellers, suggesting further downside potential.