AUD/USD Price Analysis and Trade Forecast: Daily Trading Signal

Daily Price Outlook

- Bearish Momentum Intact: AUD/USD remains pressured below the pivot point at $0.68873, with the 50 EMA at $0.69022 reinforcing a downtrend.

- RSI Nearing Oversold: The RSI at 37 suggests the pair is approaching oversold conditions, but a clear buy signal has not yet emerged.

- Critical Support Levels: Immediate support at $0.68423; a break below could target $0.68211 and $0.67994.

The Australian Dollar (AUD) is losing ground against the U.S. Dollar (USD), currently trading at $0.68622, down 0.33% for the session. The bearish pressure comes amid heightened risk aversion, as investors digest mixed U.S. economic data and concerns over China’s economic slowdown, which is weighing on commodity-linked currencies like the AUD.

The 4-hour chart shows that the AUD/USD pair is struggling to hold above its pivot point at $0.68873, indicating sellers are dominating the market. Immediate support is found at $0.68423, with subsequent support levels at $0.68211 and $0.67994.

The technical indicators reinforce a cautious outlook. The 50-day Exponential Moving Average (EMA) hovers at $0.69022, well above the current price, underscoring the bearish momentum. Meanwhile, the Relative Strength Index (RSI) is at 37, approaching oversold territory but not yet signaling a reversal. Traders should remain vigilant as a break below $0.68423 could see the AUD/USD pair testing deeper support levels.

Immediate resistance stands at $0.69160, and for any significant recovery, the pair would need to surpass this barrier, targeting $0.69403 and $0.69622 as next upside objectives. The short-term outlook remains bearish, particularly if the pair continues to trade below its 50 EMA, which could open doors for further declines.

Conclusion: Traders might consider entering short positions below $0.6878, aiming for a take profit around $0.68426, while maintaining a stop-loss at $0.69051 to manage risk effectively.

AUD/USD - Trade Ideas

Entry Price – Sell Below 0.6878

Take Profit – 0.68426

Stop Loss – 0.69051

Risk to Reward – 1: 1.3

Profit & Loss Per Standard Lot = +$354/ -$271

Profit & Loss Per Mini Lot = +$35/ -$27