31.01.202314:46 Forex Analysis & Reviews: AUD/USD outlook for January 31, 2023

The unexpectedly weak Australian retail sales report put pressure on the Aussie, with AUD/USD slipping further into the Asian trading session and at the beginning of the European session.

Thus, as of writing, the AUD/USD pair has "dipped" by 0.65% (about 47 points) since the opening of today's trading day, falling to 0.7012.

In case of further decline and breakdown of the 0.7000 "round" support level, the nearest target will be the support levels 0.6950 (144 EMA on the 4-hour chart), 0.6900 (200 EMA on the 4-hour chart and 50 EMA on the weekly chart). The breakdown of the key support levels 0.6880 (the lower line of the upward channel and 200 EMA on the daily chart), 0.6810 (144 EMA on the daily chart), and a return inside the downward channel on the weekly chart with the lower border passing through the 0.5665 mark significantly increase the risks of AUD/USD returning to the global downward trend.

In an alternative scenario, and after the breakdown of the important short-term resistance level 0.7045 (200 EMA on the 1-hour chart), long positions on AUD/USD can be resumed.

The breakdown of the local and 5-month high, and the 200 EMA on the weekly chart at 0.7145, will confirm the return of AUD/USD to the long-term bull market zone.

Support levels: 0.7000, 0.6950, 0.6900, 0.6850, 0.6810, 0.6720, 0.6700, 0.6665, 0.6635

Resistance levels: 0.7037, 0.7045, 0.7080, 0.71 45

Trading scenarios

Sell Stop 0.6980. Stop-Loss 0.7050. Take-Profit 0.6950, 0.6900, 0.6850, 0.6810, 0.6720, 0.6700, 0.6665, 0.6635

Buy Stop 0.7050. Stop-Loss 0.6980. Take-Profit 0.7080, 0.7150