AUDUSD remains in downtrend channel with potential decline to 0.6000

AUDUSD quotes recover after a six-day fall, supported by the weakening of the US dollar. The reason for the decline in the US currency was the statement of US President Donald Trump on the suspension of tariffs on imports from Canada and Mexico for 30 days. However, uncertainty surrounding tariffs on Chinese goods (10% duties come into force on Tuesday) continues to cause volatility in the market, which could limit further growth in the Australian dollar.

From a technical point of view AUDUSD on the D1 chart (daily timeframe) clearly shows a downtrend formed since October 2024. Within the wave structure, one can highlight the impulsive decline of the third wave, which ended on January 13. It was followed by a corrective fourth wave, which completed its formation on January 24. Now one can already see the formation of at least a five-wave structure. The fifth wave has not yet shown signs of completion, so a new low can be expected.

The H4 chart shows the formation of a long lower shadow (pin bar) in the 0.6086 zone, which indicates a possible local upward reversal. However, the following bullish movement does not show a confident impulse yet, making the current growth unstable.

At the same time, the relative strength index (RSI, 14) is in the neutral zone, rising above 35. This confirms the corrective component of the last rebound.

While the price remains in the descending channel, it is possible to consider selling when approaching the trend resistance in the range of 0.6260–0.6300. If the price breaks 0.6080, it will confirm the continuation of the downtrend.

The macroeconomic indicator supports the sales of the currency pair.  

An alternative scenario may be realized if the price consolidates above 0.6300.

Short-term prospects for AUDUSD suggest selling with the target of 0.6000. Part of the profit should be taken near the level of 0.6130. A Stop-loss could be set at 0.6360.

Since the bearish trend is short-term, the trading volume should not exceed 2% of your total balance to reduce risks.