AUDUSD Selloff Intensifies, 0.6350 Level in Focus

The AUDUSD currency pair has seen a sharp acceleration of its bearish momentum, with the downside move from the 0.6644 high extending to a new low of 0.6385 so far.

With the sellers firmly in control, the path of least resistance appears to be for further AUDUSD declines in the coming days. The next key target that bears will be eyeing is the 0.6340 handle.

In the near-term, the first meaningful resistance to watch arrives at 0.6430. Only a break back above 0.6430 would be an initial signal that a corrective bounce may be developing within the broader downtrend. If AUDUSD manages to climb beyond 0.6430, additional resistance could emerge around the 0.6460 level next.

However, the overall technical bias will remain bearish unless and until the currency pair is able to stage a more convincing recovery back above the 0.6460 resistance zone.

For now, the downtrend acceleration below 0.6430 support keeps the pressure on the sellers, with the focus on a potential extension towards the 0.6350 target area. Unless the buyers can resurface and push prices back above 0.6430, any rallies are expected to remain limited in scope within the dominant downtrend from 0.6644.

AUDUSD traders will want to continue monitoring any potential consolidation around current levels for selling opportunities to position in line with the dominant bearish momentum. The downside bias is expected to remain firmly intact until proven otherwise with a break back above 0.6460 resistance.