AUD/USD Daily Chart Analysis & Investment Recommendations-28/02/2025

Technical Analysis

1. Trend Analysis

• The current price is 0.62351, with a daily decline of -1.10%, indicating weakness.

• Overall, AUD/USD remains in a downtrend. Although there was a rebound in January 2025, the price failed to break key resistance levels and has since resumed its decline.

2. Support & Resistance Levels

• Support Levels:

• 0.6200: A recent low and potential short-term support level.

• 0.6050: A stronger support zone; if 0.6200 breaks, the price may test this level.

• Resistance Levels:

• 0.6292 (Blue Horizontal Line): A former support level that has now turned into resistance.

• 0.6400 Zone: A stronger resistance area that has been tested multiple times but failed to break.

3. Structure Analysis

• The chart shows that AUD/USD broke below the ascending trendline, signaling a trend reversal.

• After failing to sustain above 0.6400, the price formed a small consolidation around 0.6292 before continuing downward, indicating bearish dominance.

4. Volume Analysis

• Recent trading volume has increased, particularly when the price broke below key support levels, indicating strong selling pressure.

• A high volume drop is typically a bearish signal, suggesting further downside potential.

Investment Recommendations

Short-Term Trading

• Bearish Strategy (Short Selling):

• Entry Zone: Short around 0.6250 - 0.6290 (waiting for a slight pullback).

• Target Price: First target 0.6200; if broken, the next target is 0.6050.

• Stop Loss: Above 0.6320 to avoid getting stopped out by minor pullbacks.

• Bullish Strategy (Cautious Approach):

• If the price shows strong support at 0.6200 (e.g., long lower wicks or a bullish reversal candlestick), a short-term long position can be considered.

• Target Price: 0.6290 resistance area.

• Stop Loss: Below 0.6180 to limit downside risk.

Medium to Long-Term Trading

• Since the overall trend remains bearish, it’s advisable to trade with the trend, looking for better long opportunities at lower levels (near 0.6050).

• If the price reclaims 0.6292 and holds above it, a bullish move may develop, providing a safer long entry.

Conclusion

• Short-term bearish outlook: The trendline breakdown and strong downward momentum favor short positions.

• Key support to watch: 0.6200; if it breaks, further downside towards 0.6050 is likely.

• Wait for pullback opportunities: If 0.6200 holds, a short-term rebound could occur, but caution is needed.

⚠️ Risk Warning: This analysis is for reference only. The market is highly volatile, so trade according to your risk tolerance.