AUDUSD Rebounds After Plummeting to 0.5506 Levels

AUDUSD Price Analysis – March 19

The Australian dollar has sunk to the lowest since Thursday, October 2002, after Australia’s central bank lowered interest rates to 0.25%. Despite plummeting to 0.5506 level, AUDUSD pair spiked to fresh session tops in the last hour to about mid-0.5800s level but then stabilized after about 50 pips move quickly.

Key Levels
Resistance Levels: 0.7031, 0.6684, 6434
Support Levels: 0.5506, 0.5118, 0.4773

AUDUSD Long term Trend: Bearish

AUDUSD’s decline from 0.7031 (high) level is still on the way in the larger structure. It is part of the greater downward trend from 1.1079 (high) level. The estimate of 61.8 percent from 0.7031 to 0.6878 at 0.5506 level is already achieved. There could be continuous breaks paving the way to 0.4773 (low) level.

On the upside, it needs a break of 0.6684 resistance level to suggest short-term bottoming, on the other hand, even in case of a fast rebound, the trend may stay bearish.

AUDUSD Short term Trend: Bearish

AUDUSD’s fall has so far accelerated to a level of 0.5506. There may be some support from the medium-term projection level of 0.5506. But to confirm short term bottoming, breakage of 0.6028 minor resistance level is required.

On the other hand, more decline is still predicted from 0.6684 at 0.5118 level for the next target of 261.8 percent projection of 0.7031 to 0.6434 level.

Instrument: AUDUSD
Order: Buy
Entry price: 0.5701
Stop: 0.5506
Target: 0.6028

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