The AUDUSD experienced an upswing during the Asian session, reaching Friday’s peak of 0.66683. However, this level acted as resistance, resulting in a minor retreat. This pullback suggests a potential double top formation, offering sellers leverage in a prevailing bullish trend since 22 August. Sellers aim to maintain stops just above 0.6668, targeting a more considerable decline as their strategy.

Sellers Aim For Targets

Remaining beneath 0.6668 grants sellers short-term influence, yet tasks remain to bolster this position. The initial downside target is at the 100-hour moving average at 0.66293, a level that provided support during Thursday’s session amidst disappointing US job figures. If the 100-hour moving average is breached, attention shifts to the 200-hour moving average at 0.65917. Conversely, surpassing 0.6668 would nullify the double top pattern, favouring buyers and potentially testing the November 2024 high of 0.6687. This area aligns with a trendline on the daily chart, presenting a critical objective for upward movements. We are watching the AUDUSD as it pushes against resistance near 0.6668, a level that has held firm again today. This rejection is creating a potential double top on the charts, offering a clear signal for traders. For those looking to bet on a decline, this presents an opportunity to enter short positions with a tight stop-loss just above this key resistance.

Bearish View Supported By Economic Data

This bearish view is supported by recent economic data from Australia, as we saw the quarterly inflation rate in August 2025 dip to 3.1%, slightly tempering expectations for another RBA rate hike. At the same time, recent comments from US Federal Reserve officials have remained firm on fighting inflation, suggesting the US dollar may find continued support. These fundamentals give us a reason to believe the current resistance could hold. The first critical level to watch on the downside is the 100-hour moving average at 0.66293. We saw this exact level provide support during last Thursday’s trading session before a rally sparked by weaker US jobless claims. A decisive break below this moving average would signal that selling momentum is building. If we see a break of that first support, the next target for sellers will be the 200-hour moving average down at 0.65917. Reaching this level would suggest a more significant shift in sentiment has taken place. This scenario aligns with historical patterns we observed back in late 2023, when a persistently hawkish Fed led to extended periods of US dollar strength. On the other hand, we must be prepared for a bullish breakout if sellers fail to hold the line. A sustained move above the 0.6668 resistance would invalidate the double top pattern and put buyers firmly in control. This could be fueled by strong commodity prices, as iron ore has recently climbed back above $120 per tonne.

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