Bearish Trend in AUD/USD: Key Indicators and Price Targets
Solid ECN – The momentum of the Australian dollar against the U.S. Dollar has paused in today's trading session. As of this writing, the AUD/USD pair is testing the EMA 50 at about 0.651, which coincides with the Ichimoku Cloud.
The 4-hour chart has formed a Doji candlestick pattern, which could be interpreted as a sign of a trend reversal or a halt to the current uptick in momentum.
From a technical standpoint, as long as the AUD/USD pair trades below the cloud, the primary trend remains bearish. In this scenario, the next target will likely be March's lowest price, the 0.647 mark. Please note that if the Standard Deviation indicator rises above the 0.002 level, the pace of the downtrend will escalate.
On the flip side, the bear market should be invalidated if the price of the Australian dollar closes and stabilizes above the 0.6538 resistance mark. In this case, the rise will likely extend and aim for the upper band of the flag.