AUD/USD Dropped Below 0.6800 as Oil prices continued to decline.
- AUD/USD continued losses and transacted beneath the 0.6750 support
- A major bearish trend line is set up with resistance close to 0.6760 on the four hours chart
- USD/JPY improved further above the 144.00 level.
- The Price of crude oil dropped beneath a major support zone of $85.80
AUD/USD Technical Analysis
From much above 0.7000 against the USD, AUD started to fall sharply. In order to enter a bearish zone, AUD/USD dipped below the 0.6850 and 0.6800 support levels.
On the four-hour chart, the pair settled under the 100 SMA (red, four-hour), the 200 SMA, and 0.6750. (green, four hours).
The pair broke through the 0.6750 barriers as the decline picked up speed. It started a consolidation phase after testing the 0.6700 zone. In the event of a downturn, the pair may run into resistance near the level of 0.6750.
On the same chart, a negative trend line is forming with resistance above 0.6760. A push over the trend line resistance could spark a movement in the direction of 0.6800. The upcoming resistance is near 0.6820, and if it is crossed, the AUD/USD pair may test the 100 SMA (red, four hours).
Similarly, the pair might extend the move down below 0.6700. The 0.6665 level is close to where the next support will be. Losses may increase if the price breaks below the 0.6665 support level on the downside. The next support is near the 0.6620 level, and if it is broken, the pair may even challenge the 0.6600 level.
Looking at the price of crude oil, a critical downward break below the $85.80 support occurred, and there is a possibility of more declines in the short term.
Today’s Economic News
- ECB Interest Rate Decision – Forecast 0.5%, versus 0% previous.
- Federal Reserve Chair Jerome Powell’s speech.
Author: Francis Idowu
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