• AUD/USD pair recovered some ground on Tuesday, as bargain hunting provided some support for the Australian dollar.
• Despite the short-term recovery, the outlook for AUD/USD remains bearish. The ongoing strength of the U.S. dollar, coupled with concerns about the Australian economy, is likely to limit any sustained gains.
• The Australian dollar’s trajectory will depend on global risk sentiment, commodity prices, and any shifts in monetary policy from both the RBA and the Federal Reserve in 2025.
• At GMT 05:15, The Australian dollar was last trading up 0.45% to $0.6216.
• Immediate resistance is located at 0.6242(Dec 30th high), any close above will push the pair towards 0.6282(38.2%fib).
• Support is seen at 0.6184 (23.6%fib) and break below could take the pair towards 0.6132(Lower BB).
Recommendation: Good to sell around 0.6240, with stop loss of 0.6300 and target price of 0.6160
