The Australian Dollar Forecast (AUD/USD) currency pair remains under pressure as it moves within a descending channel. The moving averages signal a short-term bearish trend, which suggests further decline. Currently, the exchange rate sits at 0.6555, showing potential for a brief bullish correction. However, the overall outlook remains bearish, with prices likely to fall below 0.6385.
The pair is expected to test the resistance area near 0.6605. If the price fails to break through this level, a downward rebound is likely. This could lead to a continuation of the downward trend, pushing the AUD/USD pair towards the support level at 0.6385. The bearish scenario remains strong unless the price breaks above 0.6705, which would indicate a potential reversal and further growth towards 0.6945.
Technical indicators, particularly the Relative Strength Indicator (RSI), provide additional support for the bearish scenario. The RSI has shown a pattern of rebounding from the resistance line. It typically signals continued downward momentum. This rebound is seen as a confirmation that the AUD/USD pair is likely to remain under selling pressure in the near term.
Moreover, the price action within the descending channel suggests that the bearish trend is still in play. The lower boundary of the channel acts as a significant support level, but if this level is breached, it could lead to a sharp decline. On the other hand, a rebound from this boundary might offer a temporary reprieve, but the overall trend remains downward.
The current market conditions suggest that the Australian Dollar is more likely to experience further declines against the US Dollar. However, there are scenarios where this outlook could change. If the AUD/USD pair manages to break above the 0.6705 level, it could invalidate the bearish scenario. In such a case, the pair might see a strong rally, potentially targeting the 0.6945 level, which would mark a significant shift in market sentiment.
Conversely, if the pair fails to break through the 0.6605 resistance and instead closes below the 0.6455 support level, it would confirm the continuation of the bearish trend. This could result in the AUD/USD pair declining further, possibly reaching new lows below 0.6385.
In conclusion, the Australian Dollar Forecast faces continued pressure against the US Dollar. The pair is likely to fall below 0.6385, with only a breakout above 0.6705 indicating a potential shift in trend.
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Australian Dollar Forecast for August 2024: The AUD/USD pair remains in a bearish trend with potential declines below 0.6385.
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