UOB’s Quek Ser Leang highlights a weakening technical backdrop for AUD/USD after the pair broke below a rising wedge and tested the Ichimoku cloud base near 0.6870. The strategist notes downside risks toward 0.6765 if the 0.6850/0.6870 support zone gives way, while resistance is seen at 0.6960 and 0.7030, keeping the overall bias negative.

Downside risks focus on 0.6765

"AUD/USD rose to a high of 0.7188 in mid-March and then retreated. On Monday, AUD/USD fell sharply and broke below the lower end of the wedge. Yesterday, AUD/USD fell and tested the base of the daily Ichimoku cloud near 0.6870."

"While the weekly MACD remains in positive territory, it has been heading steadily lower over the past few weeks."

"The overall technical picture suggests that AUD/USD could continue to head lower. A clear break below the 0.6850/0.6870 support zone could potentially trigger a sharp decline toward 0.6765."

"On the upside, resistance is at 0.6960, followed by 0.7030."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)