**AUD/USD Technical Analysis: Sellers Regain Dominance as Correction Intensifies**
*Based on original analysis by Diego Colman, InvestingLive.com*
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The AUD/USD currency pair has recently faced a notable shift in market sentiment, with bearish pressures overtaking momentum and the correction phase deepening. Traders and investors are now focused on deciphering the pair’s immediate direction, assessing technical indicators, and considering macroeconomic forces that may influence upcoming moves. This expanded analysis dives into the recent price action, highlights pivotal technical levels, and evaluates broader factors impacting AUD/USD.
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## Recent Price Action Overview
After a period of strength spurred by improved risk appetite and a weaker US dollar, the Australian dollar has started to relinquish ground against its US counterpart. The reversal comes as global economic anxieties and US interest rate expectations shift once again. In the most recent sessions, the AUD/USD pair slipped decisively under key technical support, signaling a bearish resurgence.
– The AUD/USD experienced a sharp pullback after failing to sustain rallies above multi-month highs.
– Price declines were accelerated as sellers reclaimed control, especially after disappointing economic releases from Australia and subtle strength in the US dollar.
– Technical breakdowns were observed, with the pair breaching short-term moving averages and key support zones.
This deterioration comes as traders position themselves ahead of upcoming inflation prints, central bank decisions, and evolving risk sentiment worldwide.
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## Technical Analysis: Short-Term and Long-Term Perspectives
### 1. Short-Term Chart Dynamics
On the 4-hour and daily charts, AUD/USD shows clear signs of bearish momentum.
– **Short-term support:** The pair initially tried to consolidate around the 0.6600–0.6620 region, which previously acted as a springboard for rebounds.
– **Breakdown:** Once this support failed, momentum quickly favored sellers, pushing the pair towards subsequent support levels.
**Key Price Levels to Monitor:**
– **Immediate support:** Sits around 0.6580–0.6570. A clear break below this area points to added downside pressure.
– **Further downside:** The next notable support aligns with the 200-day moving average, near 0.6530–0.6550. Violation here could intensify the selloff.
– **Resistance:** Any recovery would likely face resistance at 0.6640–0.6660, near recent swing highs and the 50-day moving average.
### 2. Indicator Signals
Several widely used technical indicators are pointing toward reinforced bearishness:
– **Relative Strength Index (RSI):** Recently dropped into or near oversold territory on shorter timeframes, reflecting heightened selling momentum but also hinting that a short-term bounce is possible if sell-offs become excessive.
– **Moving Averages:** The 20-day and 50-day simple moving averages (SMA) have shifted into a bearish alignment, with prices slipping below these levels.
– **MACD (Moving Average Convergence Divergence):
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