AUDUSD – Sharp Downtrend Breaks Below Thick Daily Cloud Base

The steep decline in AUDUSD extends into its ninth consecutive day, accelerating on Thursday with a drop of 0.85% during the Asian and European sessions. The pair has reached its lowest levels since early May and is on track for its biggest weekly loss since mid-June 2023.

The break below the 0.6580 pivot (200DMA and 50% retracement of 0.6362/0.6798) has intensified the downtrend, moving through critical supports at 0.6538/28 (base of thick daily cloud and Fibo 61.8%), generating a strong bearish signal. This exposes new targets at 0.6500 (psychological level) and 0.6465 (Fibo 76.4%).

While bears are expected to maintain control under the current conditions favorable to the Australian dollar, partial profit-taking may occur in the coming sessions as daily indicators are deeply oversold.

The daily cloud base has become a solid barrier at 0.6538, which should ideally contain any upward moves. Extended rallies should be capped under 0.6580 to maintain bearish momentum.

Res: 0.6528; 0.6538; 0.6580; 0.6605
Sup: 0.6500; 0.6465; 0.6389; 0.6362