AUD/USD: Phase of correction could persist towards last year low of 0.6200/0.6170 – SocGen

AUD/USD decline has stalled near 0.6360. However, it has failed to reclaim recent pivot high at 0.6525. Economists at Société Générale analyze the pair’s outlook.

Struggling to reclaim recent pivot high at 0.6525

AUD/USD decline paused after touching the line since March at 0.6360. A large bounce hasn’t materialized; recent pivot high at 0.6525 is expected to be first layer of resistance near term.  

Holding below 0.6525, there would be risk of one more down leg. Below 0.6360, next potential support is located at projections and October 2022 low of 0.6200/0.6170.