AUD/USD Testing Key Support Zone

Chart Analysis: The Australian Dollar is testing a critical support area as it hovers near 0.6375 and 0.6285 (pink horizontal lines), levels that have held firm multiple times over the past year.

1️⃣ Support Retest:

The price has approached this zone, which acted as support in November 2023 and March 2024. Traders often watch such levels for potential rebounds or breakdowns.

2️⃣ Moving Averages:

50-day SMA (blue): Trending downward, reflecting short-term bearish momentum.
200-day SMA (red): Flat-to-downward slope, signaling a weakening long-term trend.
The price remains firmly below both SMAs, reinforcing bearish sentiment.

3️⃣ Momentum Indicators:

RSI: Hovering near 36, indicating weak momentum but not yet oversold. Traders might monitor for any divergence signals.
MACD: Bearish momentum persists with the signal line below zero and no clear crossover in sight.

What to Watch:

If the price decisively breaks below 0.6285, it could open the door for further downside.
On the flip side, a rebound from this support zone might see a test of the 50-day SMA near 0.6550.
Monitor RSI for any bullish divergence and price action around these key levels.
The AUD/USD remains under pressure, with a critical support test underway. Traders may find clarity as price action unfolds near this zone.

-MW