The AUD/USD has seen its value decrease in a swift manner the past couple of days. On the 6th of July, the AUD/USD was trading near the 76.00000 ratio, but as of this writing the Forex pair is near 74.30000. The current values of the AUD/USD are within the vicinity of support levels last seen in early December of 2020. Speculative bulls may feel quite attracted to the current price of the AUD/USD, but they need to be careful about blindly placing wagers on long positions.
On the 25th of February, the AUD/USD was trading briefly near a high of 80.00000, but since this date the Forex pair has produced choppy and incremental bearish pressure. Yes, the highs of May did approach the 79.00000 ratio, but this was not able to be sustained. Support near the 74.00000 should be watched carefully now; if it manages to prove durable, this may be an indication that the Australian dollar has been oversold.
The last time the AUD/USD traded below the 74.0000 level was in November of 2020. On the first of November and earlier into September of 2020, the 70.00000 proved to be rather adequate support. Before bearish traders contemplate these lower depths however, they might want to take into consideration the notion that the slump in the AUD/USD has happened on the back of nervous sentiment due to U.S central bank policy whispers.
From a speculative standpoint, traders who feel the AUD/USD has been oversold in the short term and want to wager on buying positions cannot be faulted. Yes, this would be going against the trend, but if a trader uses solid stop loss ratios near current support levels, this could prove to be a rather intriguing short-term wager. Conservative traders may want to wait for additional moves lower and the 74.10000 mark to be seen before stepping into long positions.
Speculators who want to continue selling the AUD/USD cannot be blamed. The trend has certainly been bearish, but these traders should not be overly greedy and use take-profit orders to make sure they do not watch profits vanish on potentially sharp reversals.
AUD/USD Short-Term Outlook:
Current Resistance: 74.80000
Current Support: 74.10000
High Target: 75.40000
Low Target: 73.82000
