AUD/USD descends into crucial support

Australian Dollar Technical Price Outlook: AUD/USD Weekly Trading Levels

• Australian Dollar Technical Trading Level Update – Weekly Chart
• AUD/USD Downtrend falls back towards support after US post-CPI release
• Australian Resistance 6930s, 6991-7016 (Key) 7139- Support 6621/70 (Critical), 6461, 6196

fell over 2.2% against the Australian dollar U.S. Dollar The multi-year downtrend is now approaching support on the heels of warmer US inflation than expected read with AUD/USD. We are looking for a possible price movement here, with a risk of an even sharper Australian selloff with a break lower. These are the update target and invalidation level which is AUD/USD Weekly Technical Charts. review my latest weekly strategy webinars For an in-depth analysis of this Australian technical setup and more.

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Australian Dollar Price Chart – AUD/USD Weekly

chart prepared by Michael Boutrostechnical strategist; AUD/USD on Tradingview

notes: In our July AUD/USD technical forecast We highlighted that AUD/USD had rebounded from the lower parallel of this multi-year descend hay-stalker The formation – that recovery failed at the mid-line / August 2021 low – was last month’s close of 7138, with a decline before a sharp reversal now once again near the lower parallel. It is decision time for Australian bears.

A break down this slope exposes a key help on axle 6621/70– An area defined by a 100% extension of the 2021 fall, the week’s close of 2008 and the low of 2019. Ultimately, a price below this range will be required for the next move short of 61.8% of the price. fibonacci Retracement of entire 2020 rally at 6461, initial weekly resistance 25% parallel (currently ~.) is tracked6930s) Supported by November 2020 in the low / 2020 annual open 6991-7016, Comprehensive recession Invalidation has now reduced to the 52-week moving average which almost converges on the mid-line 7139,

ground level: The Australian Dollar is approaching a multi-year downtrend support and we are looking for a price reaction on a pullback towards the lower parallel – see weekly close. From a trading standpoint, rallies should be limited by the monthly open 6840 If the price is indeed turning lower with a close below 6621, it is necessary for the price to move lower to the next major-leg. I will publish an updated Australian Dollar price outlook once we have further clarity on short-term AUD/USD technical trading levels.

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Australian Dollar Trader Sentiment – AUD/USD Price Chart

• summary of IG Client Sentiment Shows that traders are net-long AUD/USD – the ratio is +2.43 (70.85% of traders are long) – usually recession Reading
• Long positions are 2.41% higher than yesterday and 18.31% lower than last week
• Short positions are 26.43% lower than yesterday and 19.54% lower than last week
• We generally take a contrarian view to crowd sentiment, and the fact that traders have been around for a long time suggests that the AUD/USD price may continue to decline. Traders are longer than yesterday and last week, and the combination of the current situation and recent changes gives us a strong AUD/USD-bearish opposite trading bias. Rate Approach

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— written by Michael BoutrosTechnical Strategist with DailyFX

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