**AUD/USD Technical Outlook: Sellers Gain Momentum After Key Support Breakdown**
*Adapted and expanded from the original analysis by InvestingLive.com*
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The Australian Dollar (AUD) faced renewed weakness against the United States Dollar (USD) as bearish forces intensified following a significant technical breakdown in the AUD/USD currency pair. Sellers have now assumed a clear advantage, shifting market sentiment and potentially setting the stage for further declines. This article examines the technical landscape governing AUD/USD, analyzes recent price action, considers contributing fundamental factors, and offers a comprehensive outlook for traders.
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### Recent Price Action: How the Breakdown Unfolded
The AUD/USD pair has been under constant pressure in recent weeks, reflecting both domestic and international developments. A key technical event—a break below a well-defined support level—has emboldened bearish traders.
– Up until the recent breakdown, AUD/USD had established a trading range characterized by minor rallies toward resistance near 0.6700, with buyers attempting to defend downside levels.
– The support zone around 0.6580 had served as an anchor for AUD/USD since late April, repeatedly repelling sell-offs.
– On a decisive trading session, heightened by robust USD strength and risk-off sentiment, AUD/USD closed convincingly below 0.6580 for the first time since early May.
This technical move triggered a cascade of stop-loss orders and profit-taking from long positions, amplifying the bearish momentum. The resulting price structure now favors further declines unless buyers can reclaim lost territory.
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### Technical Analysis: AUD/USD Trends and Key Levels
#### Trend Structure and Moving Averages
– The sustained downtrend is visible on daily charts, with prices consistently printing lower highs and lower lows—a classic bearish formation.
– The 50-day Exponential Moving Average (EMA), which lies above the current price around 0.6630, is now acting as dynamic resistance.
– The 200-day EMA, a broader trend indicator, sits further up near 0.6650, reinforcing the technical ceiling.
#### Support and Resistance Levels
**Key Technical Levels:**
– **Immediate Resistance:**
– 0.6580 (recent breakdown point; previous support turns to resistance upon retest)
– 0.6620 to 0.6630 (confluence area with short-term moving averages)
– 0.6700 area (major supply zone; prior failed rallies)
– 0.6750 (multi-month high and bulls’ target if reversal occurs)
– **Near-Term Support:**
– 0.6540 (recent swing low; short-term target for sellers)
– 0.6500 (psychological round number and longer-term support)
– 0.6460 (March 2024 low)
– 0.6400 (key support from late 2023)
*Chart patterns indicate that if AUD/USD remains capped below 0.6580 and 0.6620, lower support
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