5 Days and Counting: AUD/USD Takes a Dip, Testing Key Support Levels – A Technical Analysis
Description:
The AUDUSD is down for the 5th consecutive day. Recall on Friday last week, and then on Monday, the price of the AUDUSD was testing/moving above it’s key 100-day MA near 0.6515. The high price reached 0.65224, but ultimately stalled and started a run to the downside, leading to a move from 06522 to the low reached today at 0.6337 (or 185 pips). Looking at the daily chart, the fall is taking the price below a swing area between 0.6346 and 0.6363 (see video). Staying below that level is the most…
Article:
Oh the joys of trading currencies, where one minute you’re riding high on your investments and the next you’re watching your profits disappear faster than you can say “AUD/USD”. The past five days have been a rollercoaster for traders as the AUD/USD pair takes a nosedive, testing key support levels and leaving investors scratching their heads.
It all started last week when the price of the AUD/USD was teasing us by flirting with its 100-day MA near 0.6515. With the high reaching 0.65224, it seemed like smooth sailing ahead. But alas, the market had other plans as the price plummeted to a low of 0.6337, a whopping 185 pips drop in just a few days.
Looking at the daily chart, it’s evident that the fall has breached a crucial support zone between 0.6346 and 0.6363, indicating that the bears are firmly in control. Will the AUD/USD be able to bounce back from this downward spiral or are we in for more rocky days ahead? Only time will tell.
How Will This Affect Me?
As an individual trader, the recent downturn in the AUD/USD pair could have a significant impact on your portfolio. If you’re long on the pair, you may be facing losses as the price continues to drop. It’s crucial to closely monitor the market and consider your risk management strategy to minimize any potential losses.
How Will This Affect the World?
While the AUD/USD pair may seem like just another blip on the radar for the average person, its fluctuations can have far-reaching effects on the global economy. A weaker Australian dollar could impact international trade and investment, potentially leading to ripple effects across various markets and industries worldwide.
Conclusion:
In conclusion, the AUD/USD’s recent dive and testing of key support levels have sent shockwaves through the trading community. As traders brace themselves for what lies ahead, it’s essential to stay informed, adapt to market conditions, and always be prepared for the unexpected twists and turns of the forex world.
