AUDUSD Rejected From Supply Zone – Bearish Slide Incoming?

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The Aussie dollar (AUDUSD) is showing signs of weakness after repeated rejections at the 0.6470 supply zone. Price has struggled to break this area, forming a solid distribution pattern on the 1H chart. With momentum fading, the pair now looks poised for a potential downside move.

Technical Overview:

Strong Supply Zone: 0.6470 (marked by heavy distribution and LuxAlgo’s visible range)

Current Price: 0.6412

First Target (Support): 0.6221

Second Target (Demand Zone): 0.5986–0.5900

Bias: Bearish unless price breaks and closes above 0.6470 with strength


Confluences Supporting Bearish Outlook:

Prolonged sideways structure near supply = likely distribution

Multiple failed breakout attempts above 0.6470

AUD under pressure from commodity softness + stronger USD

Clean downside levels: 0.6221 (minor support), 0.5986 (major demand)


Trade Setup Idea:

Entry Zone: 0.6410–0.6440 (on rejection candles or breakdown)

Stop Loss: Above 0.6480

Targets:

1. TP1 – 0.6221


2. TP2 – 0.5986



R:R Potential: ~3R if both targets hit


Macro Watch:

Upcoming US data releases could fuel USD strength (FOMC, CPI)

Aussie impacted by China economic data and commodity demand outlook



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Will AUDUSD collapse from here or surprise us with a breakout? Let me know your outlook in the comments!


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