AUD/USD: Downtrend to continue towards the 0.6660 mark – SocGen

AUD/USD has experienced a steady decline since forming a high near 0.8000 in February 2021. As economists at Société Générale note, head and shoulders pattern points towards risk of persistent downward move to potentially 0.6660.

Near-term hurdle seen at 0.7250

“Interestingly, the pair has formed a Head and Shoulders pattern and is breaking below the neckline. The downward move has persisted towards November 2020 lows; large upside is not envisaged.” 

“0.7250, which marks the 23.6% retracement of the recent decline, is likely to be a near-term hurdle.”

“The formation points towards risk of the downtrend continuing towards 0.6770 and perhaps even towards projections of 0.6660.”