AUD/USD needs to hold 0.6540/0.6465 to prevent further losses – SocGen

AUD/USD continues losing ground. Holding above support at 0.6540/0.6465 is critical to avoid a deeper fall, analysts at Société Générale report.

Defending 0.6540/0.6465 can lead to an initial bounce

“The pair has now breached July lows and is close to the lower limit of a multi-month channel at 0.6540/0.6465 which is also a projection for the down move. Defending this can lead to an initial bounce.”

“It would be interesting to see if the pair can establish itself beyond the 200-DMA (now at 0.7100/0.7130).”

“Failure to hold 0.6465 can extend the decline towards next potential support at 0.6100, the 76.4% retracement from 2020.”