AUD/USD – Can Expect a Bearish Breakdown for the Aussie Dollar Pair
- Take Profit: 0.6400
- Stop Loss : 0.6800
- Timeline: 1-2 days
- Buy Stop : 0.6680
- Take Profit: 0.6750
- Stop Loss : 0.6600
The AUD/USD pair price was flashing a typical bearish sign on the daily charts by forming a head and shoulders pattern. So, a bearish breakdown would be the most likely outcome for this week, which could be a good opportunity to enter a short trade. The pair is currently trading at its lowest price point, which is very similar to what it was in November of last year. We saw the pair moving below the 38.2% Fibonacci retracement level. Plus the 25-day and 50-day moving averages made a bearish crossover.
When examining the fundamentals, it is clear that the decline was mostly brought on by the strong risk-off sentiment, which also prompted the US Dollar index to attain strong gains in recent weeks. The fall was fueled by the US job statistics released last Friday. The US consumer inflation data is what we should be anticipating next, but economists predict that the data will likely show that inflation is continuing to be high. In such a situation, we can predict the Fed raising interest rates once again. The impending employment statistics, together with the consumer and business confidence data, could be important for AUD since they will provide additional insight into the state of the Australian economy.