AUD/USD – A Bearish Breakout is Likely to Happen for the Pair

Long Position

Take Profit: 0.6700
Stop Loss: 0.6600
Timeline: 1 day

Short position

Sell Stop: 0.6620
Take Profit: 0.6500
Stop Loss: 0.7025

On the charts, a significant pullback was seen on Friday that can be related to the unresolved banking sector turmoil. The decline also prompted a retest of the key support level, which was actually on the lower side of the green ascending channel, at 0.6630. The 25-period and 50-period Moving Averages continue to be slightly below the pair price, and the MACD appears to have moved below the centre middle line. In light of all these factors, a bearish breakout is likely to happen for the Aussie Dollar pair.

The price of the Australian Dollar pair was almost at its lowest point, since March 16, just ahead of the two important economic data releases pertaining to Australia. We have seen a retreat in the pair since the Fed announced the 0.25% rate hike and hinted at additional rate hikes in the future. The RBA minutes, which showed that they are just about ready for another round of rate hikes, also had an impact on the pair. Consumer inflation data and retail sales data will also be released, and both will undoubtedly have an impact on the pair. The Conference Board’s US consumer confidence statistics will also be something to keep an eye on for the pair.