Certainly! Below is a comprehensive and expanded rewrite of the Forex article originally published on economies.com, titled “The AUD/USD is Under Negative Pressure – Analysis 18-08-2023,” adding further technical context and supplementary information from other reliable financial sources. All credits for the original analysis are attributed to economies.com.
—
# The AUD/USD Trades Under Significant Downward Pressure: Expanded Technical Analysis
**Original analysis by economies.com, rewritten and expanded to provide deeper insight into the prevailing market dynamics impacting the AUD/USD pair.**
## Introduction
Throughout 2023, the global forex market has witnessed pronounced volatility, largely influenced by the fluid dynamics between the world’s leading economies. Currency pairs such as the Australian Dollar (AUD) against the US Dollar (USD) have become focal points for traders and analysts, especially amid global economic tightening and shifting interest rate expectations. The AUD/USD, in particular, faces persistent downward pressure, influenced by a mix of technical signals, macroeconomic data, and central bank policies.
In this article, we provide a detailed technical and fundamental breakdown of the AUD/USD pair as of August 2023, referencing the original analysis by economies.com and supplementing with additional context from market experts and major financial news sources.
—
## Recent Price Action and Technical Overview
As of mid-August 2023, the AUD/USD pair has exhibited pronounced bearish momentum. The pair has broken below key technical support levels, reinforcing the negative sentiment surrounding the Australian currency.
### Current Technical Snapshot
– **Downtrend Resumption**: The AUD/USD pair resumed its downward movement after failing to hold above previously established support.
– **Breach of Support Levels**: Key support at 0.6400 was breached, signaling an acceleration of bearish momentum and opening the path toward lower technical targets.
– **Moving Averages**: The pair remains below its 50-period exponential moving average (EMA), a widely-tracked indicator that signals continued downside pressure.
– **Momentum Indicators**: Technical oscillators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest that bearish forces dominate, although oversold readings could hint at short-term corrective moves.
—
## Key Technical Levels
Monitoring central price areas and technical thresholds is essential for short-term and swing traders. Below are the primary levels dictating market psychology as of August 2023:
**Support Levels:**
– 0.6450: Recent minor support, now serving as a potential resistance after the breakdown
– 0.6400: The psychological and technical threshold that was decisively broken this week
– 0.6320: Next major bearish target; a breach could intensify the selloff
– 0.6250: A historically significant level, watched by many institutional traders
**Resistance Levels:**
– 0.6500: Initial resistance zone, close to recent session highs
– 0.6600: Medium-term resistance, often referenced by swing traders
Read more on AUD/USD trading.