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The AUD/USD pair experienced a decline on Monday, extending a downward trend that began late last week. Buyers intervened near the key support zone between 0.7100 and 0.7113, stabilizing the price temporarily. However, the subsequent rebound stalled before reaching the 100-hour moving average, indicating sustained bearish pressure. Sellers regained control, breaking below the critical 0.7100 level and pushing the pair to a low of 0.7080. This breakdown raises concerns about further declines toward the 0.7055 level, a significant retracement target from the March low. The current price action around 0.7112 highlights a critical technical battle between buyers and sellers.
For traders, the breakdown below 0.7100 signals a shift in momentum to the downside, increasing the likelihood of a deeper correction. The 0.7055 level becomes a key watchpoint, as a sustained move below this level could accelerate selling pressure. Conversely, a successful defense of the 0.7100-0.7113 zone by buyers might trigger a short-term recovery. The 100-hour moving average remains a dynamic resistance level to monitor.
Looking ahead, the focus will be on whether the AUD/USD can stabilize above the broken support zone or if sellers will drive it toward 0.7055. Gulf forex traders should closely track these levels, as a breakdown could influence broader risk sentiment in the region. Technical indicators like the 38.2% and 50% retracement levels will be critical in determining the next directional move.
