AUD/USD Approaching Key Long-Term Support Zone

Chart Analysis:

The Australian Dollar has fallen sharply and is now approaching a key support level near 0.6172, last tested in October 2022.

1️⃣ Support Zone:

The horizontal level at 0.6172 represents a critical long-term support area. A test of this level could attract significant attention from market participants.

2️⃣ Fibonacci Retracement:

The 78.6% Fibonacci retracement of the larger upswing sits around 0.6042, which could act as an extended support level if the current zone is breached.

3️⃣ Moving Averages:

50-day SMA (blue): The pair remains well below this level, currently at 0.6524, signaling strong bearish momentum.
200-day SMA (red): Positioned at 0.6615, reflecting a broader downtrend in play.

4️⃣ Momentum Indicators:

RSI: At 30.54, nearing oversold territory, which could signal a potential short-term bounce or pause in the downtrend.
MACD: Deep in negative territory, with no clear signs of reversal as the MACD line continues to trend downward.

What to Watch:

Price action near 0.6172: Will the level hold, or will a break open the door for further declines toward 0.6042?
RSI divergence or bullish patterns near support could indicate the possibility of a rebound.

AUD/USD remains under significant pressure, with momentum favoring bears as the pair approaches a pivotal support zone.

-MW