**AUD/USD Technical Analysis: Major Support Breached, New Bearish Opportunities Emerge**
*Based on original reporting by Adam Button, forexlive.com. Additional research and context included for educational purposes.*
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## Introduction
The AUD/USD currency pair has recently experienced a significant technical development that has caught the attention of traders and analysts alike. The breach below a pivotal support level signals a possible shift in short-term momentum, presenting new dynamics for both sellers and buyers. This comprehensive analysis delves into the implications of this move, the technical outlook, and what traders should watch for in the coming trading sessions.
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## Summary of Recent Price Action
– The AUD/USD has broken decisively beneath the 0.6600 level, previously seen as a psychological and technical support.
– This move marks the lowest point for the pair in nearly a month, hinting at renewed bearish pressures.
– The decline follows a period of relative consolidation, where the pair had held above a trading range.
– Recent US dollar strength and perhaps shifting risk sentiment have contributed to this pressure on the Aussie.
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## Context and Background
### Key Factors Behind the Move
– **US Dollar Strength:** The greenback has generally been firm, buoyed by resilient US economic data and hawkish rhetoric from the Federal Reserve. Markets are recalibrating expectations around US interest rate cuts, causing the dollar to attract fresh demand.
– **Risk Sentiment:** Global risk appetite has been mixed. Concerns about global growth, lingering geopolitical risks, and soft data from China—Australia’s largest trading partner—have weighed on the Australian dollar.
– **Australian Fundamentals:** Data from Australia has not provided a strong counterbalance. Inflation remains sticky, but the Reserve Bank of Australia (RBA) has shown restraint, leading some to unwind expectations of further near-term tightening.
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## Technical Analysis
### The Importance of the 0.6600 Level
– Historically, the 0.6600 price has served as a center of gravity for both buyers and sellers.
– This level has been tested multiple times since late 2023, acting as resistance in November and support several times in 2024.
– A clean break below this level implies that sellers have overpowered buyers at a key crossroads, exposing the pair to further losses.
### Chart Overview and Price Structure
– **Daily Chart:** The pair broke below the recent range between 0.6600 and 0.6700.
– **Short-Term Moving Averages:** The 21-day and 55-day exponential moving averages point lower and are currently above spot, reinforcing a downside bias.
– **Momentum Indicators:** The Relative Strength Index (RSI) now hovers in neutral territory but is trending toward oversold conditions, hinting at possible acceleration if selling pressure persists.
### Key Technical Levels to Watch
– **Immediate Resistance:**
– 0.6600 (former support, now likely to act as resistance)
– 0.6630 (
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