• The AUD/USD bounced during Thursday's trading session, with the 0.66 level offering support previously.
• The market is trying to determine whether it will break down below that level and continue to decline.
• Despite attempting to rally during the session, the market is struggling to hold onto gains. It is worth noting that we have a bearish flag and an "H pattern" forming.

The 50-Day EMA resides at the 0.67 level, which could offer significant resistance. All things considered, it is likely that we will see sellers come back into the market, leading to a drop. However, if the market takes off to the upside, clearing the 50-Day EMA could open the possibility of a move to the 0.68 level, where the 200-Day EMA is located.

Currently, the market appears to be a "fade to rally" type, making it difficult to become overly bullish on the Australian dollar. The currency is sensitive to economic news and global trade, and as a commodity currency, it is likely to face weaknesses in the future. After all, if the economy is slowing down, the demand for the Aussie will drop as a result, although it might be a slow process.
 

Traders Must Monitor the Market Closely

The Federal Reserve is also a significant factor, and it is expected that the central bank will continue to stay "tighter for longer," despite traders' wishes. The trading community and the Federal Reserve have been in a bit of a standoff, and something will have to give soon. A potential breakdown is on the horizon, and it appears that this is the direction in which we are heading.

At the end of the day, the Australian dollar bounced during Thursday's trading session, but it is likely that sellers will return to the market, leading to a drop. The 50-Day EMA at the 0.67 level could provide significant resistance, and if the market takes off to the upside, it could move toward the 0.68 level where the 200-Day EMA is located. As a commodity currency, the Australian dollar is sensitive to economic news and global trade and is likely to face weaknesses in the future. The Federal Reserve is also a significant factor and a potential breakdown is on the horizon. Traders must stay vigilant and monitor the market closely to make informed decisions about investing in the Australian dollar.

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