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The AUD/USD pair experienced a sharp decline due to risk-off sentiment and a stronger U.S. dollar, breaking below critical support levels including the 100-day moving average (0.7073). Although a temporary rebound occurred following a reversal in U.S. equities and lower Treasury yields, the recovery stalled near the former May low at 0.70789. The failure to hold above the 100-day MA suggests continued bearish momentum, with sellers maintaining control. Key support levels now include the 0.7002-0.7014 range, with a potential breakdown targeting 0.6938-0.6962. Improved risk sentiment from U.S. equity gains, particularly the NASDAQ, could support the AUD/USD but has yet to translate into sustained buying pressure. Traders should monitor the 100-day MA as a critical threshold for reversing the downward trend. For forex traders, the pair’s inability to stabilize above this level indicates ongoing volatility, with potential for further declines if sellers dominate. The next 48 hours will be crucial as the market tests key support/resistance levels and assesses broader risk appetite shifts.
