Daily Price Outlook

- AUD/USD drops to 0.65321, facing resistance up to $0.6713 and support down to $0.6419.

- RSI at 34 and MACD slightly negative, indicating current bearish sentiment.

- Pair trades below the 50-day EMA, with a bearish outlook reinforced by recent channel breakout patterns.

On December 7, the Australian Dollar (AUD/USD) experienced a decline, registering a 0.27% decrease to 0.65321. The currency pair, in the broader scope of the Forex market, is situated at a crucial juncture, hovering around the pivot point of $0.6530. The AUD/USD faces immediate resistance at $0.6602, followed by higher barriers at $0.6639 and $0.6713. Conversely, immediate support is established at $0.6493, with additional support levels at $0.6456 and $0.6419, potentially providing stability against further declines.

The Relative Strength Index (RSI) for the pair stands at 34, indicating a bearish sentiment as it resides below the neutral 50 mark. This suggests that the pair is neither in the overbought nor oversold territory, leaving room for potential directional changes. The Moving Average Convergence Divergence (MACD) is marginally negative at -0.00056 compared to its signal line at -0.00185, hinting at a subdued bearish momentum.

Notably, the AUD/USD is trading just below the 50-day Exponential Moving Average (EMA) of $0.6562, further underscoring the current bearish inclination. The observed upward channel breakout and the closing of candles below the 0.6550 level suggest selling pressure in the market. This technical pattern indicates a potential continuation of the bearish trend, provided the pair remains below the crucial 0.6550 threshold.

In conclusion, the AUD/USD pair exhibits a bearish bias in the short term, predominantly influenced by technical indicators and chart patterns. The currency pair's movements are likely to be contingent on the broader market sentiment and economic data releases, with a focus on resistance testing if there's a shift in market dynamics.

 AUD/USD Price Chart – Source: Tradingview
 AUD/USD Price Chart – Source: Tradingview

AUD/USD - Trade Ideas

Entry Price – Sell Below 0.65487

Take Profit – 0.64902

Stop Loss – 0.65969

Risk to Reward – 1: 1.2

Profit & Loss Per Standard Lot = +$585/ -$482

Profit & Loss Per Mini Lot = +$58/ -$48



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