AUD/USD Price Analysis – Aug 09, 2023

Daily Price Outlook

Regarding 0.6457, the intraday sentiment is again skewed downwards. Following the breach, the descent from 0.7156 to the 100% projection level of 0.6457 from 0.6894 to 0.6195 will persist. As long as resistance remains at 0.6738, any potential recovery will maintain a slight downward risk for the immediate future.

During the Asian trading session on Wednesday morning, the AUD/USD pair remains subdued at 0.6555. Reports concerning the US-China relationship continue to strengthen the prevailing inclination towards purchasing US Dollars.

However, it's worth noting that the US government intends to focus solely on Chinese businesses generating over 50% of their revenue from quantum computing and artificial intelligence (AI). According to Bloomberg, an executive order by US President Joe Biden regarding this ban is expected this week.

Recent developments between the world's two largest economies might benefit the Australian Dollar (AUD) acting as a liaison for China while adversely affecting the AUD/USD pair.

AUD/USD - Technical Analysis

The AUD/USD pair closed beneath the 0.6550 benchmark yesterday, further solidifying the forecasted bearish trajectory for the imminent timeframe, with an eye on the 0.6400 mark as the subsequent pivotal target.

The prevailing bullish undertone, as indicated by the Stochastic's upbeat momentum, necessitates the pair to remain under the 0.6550 and 0.6600 thresholds to ensure the continuation of the anticipated bearish momentum. Surpassing these benchmarks could act as a catalyst for the pair's resurgence, initiating a potential rally towards the significant resistance set at 0.6665.

For today, the anticipated trading spectrum is projected to span from a support level of 0.6490 to a resistance of 0.6590. The day's overarching trend is expected to be bullish.