Key Resistance Test: A Turning Point for AUD/USD?

The Australian Dollar to American Dollar (AUD/USD) currency pair has recently attracted significant attention in the forex market, primarily due to its interaction with a critical resistance level. This resistance, characterized by a dynamic downtrend line, also forms the upper boundary of a symmetric triangle pattern. This technical structure has been pivotal in guiding the currency pair’s movements.

Towards the end of November, AUD/USD approached this crucial resistance line, resulting in a noticeable bounce, indicating the strength of this technical barrier. However, as we moved into Friday and continued today, the pair is once again testing this resistance. A successful breakout above this downtrend line would not only signal a departure from the prevailing downtrend but also activate a robust long signal. Should this occur, the immediate target for the pair would be the green resistance zone at 0.69, a level that could serve as the next significant hurdle for the currency pair.

Conversely, if the AUD/USD pair fails to break through and instead bounces off this key downtrend line, it would reinforce the bearish sentiment. Such a scenario would potentially lead to a downward move, targeting the orange area around 0.65. This outcome would suggest a continuation of the current bearish trend within the confines of the symmetric triangle pattern.

Source: https://www.axiory.com/analytics/technical-analysis/key-resistance-test-a-turning-point-for-aud-usd