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AUDUSD has displayed a recent pullback after a strong uptrend, prompting a closer look at the technical situation. This analysis explores the potential scenarios for the currency pair.

Uptrend Intact, But Correction Likely:

• Upward Trajectory Maintained: Despite the pullback, AUDUSD remains within the uptrend that commenced at 0.6477. This suggests that the overall bullish sentiment is still present.
• Consolidation Phase Emerging: The pullback from the high of 0.6667 indicates a potential consolidation phase rather than a complete trend reversal. This is a normal price movement within an uptrend and allows for price stabilization before the potential continuation of the uptrend.

Key Levels to Watch:

• 0.6584 Support Crucial: The critical level to monitor is 0.6584. As long as this support holds, it reinforces the bullish case and indicates a possible resumption of the uptrend. A further rise towards the 0.6750 area remains a possibility after a successful breakout from this consolidation phase.
• Initial Resistance at 0.6640: If the bulls manage to push the price higher, the initial resistance level to watch is at 0.6640. Overcoming this hurdle could lead to a test of the previous high at 0.6667. A decisive break above this point would open the door for a potential rise towards the 0.6750 target zone.
• 0.6500 Potential Downturn Level: Conversely, a breakdown below 0.6584 support would suggest a weaker uptrend and could indicate a deeper correction or even a trend reversal. This scenario could see the price fall further towards 0.6500.

Overall Sentiment:

The technical outlook for AUDUSD leans bullish in the medium term. While a consolidation phase is underway, the uptrend remains intact as long as support holds. However, a break below 0.6584 could signal a potential shift in momentum and a possible decline towards 0.6500. Monitoring price action around these key levels will be crucial in determining the future direction of AUDUSD.

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