AUDUSD Pair Trades Flat Beneath Mid-0.7700s on COVID Lockdowns

AUDUSD Price Analysis – May 27

During the first half of the European session, the AUDUSD pair oscillates amid mild gains and modest losses and was last seen trading in the neutral zone, just below the mid-0.7700s. The recent COVID lockdowns in Australia, as well as a milder risk tone, limited the Aussie’s upward potential.

Key Levels
Resistance Levels: 0.8000, 0.7890, 0.7800
Support Levels: 0.7700, 0.7650, 0.7600
AUDUSD Long term Trend: Ranging
The downside risks pushed the Australian Dollar lower against the US Dollar after the prior day’s trading session, the exchange rate fell 54 pips or 0.70 percent. In the larger scheme of things, the entire downtrend from 1.1079 (2001 high) should have already ended at 0.5506 (2020 low).

The gain from 0.5506 could represent the start of a long-term uptrend, or it might be a corrective climb. The reaction to the crucial resistance level of 0.8136 will tell which situation it is. However, as long as 0.7414 resistance turned support persists, the medium-term surge is projected to continue.
AUDUSD Short term Trend: Ranging
Despite remaining above the 0.7700 support zone, the AUDUSD intraday mood remains in a range. The resistance level of 0.7800 remains steady at the top of the chart; an additional drop is likely. The initial constraints, on the other hand, could be related to the horizontal support floor at 0.7725.

A breach of 0.7725 will, on the other hand, resume the corrective slide from 0.7890, with a 38.2 percent retracement objective of 0.4877. A firm breach of the 0.7800 level, on the other hand, would lead to a retest of the 0.7890 high. The intraday bias may shift to the downside seeking 0.7531 support and potentially further lower.

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