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AUD/USD Turns Red Below 0.6800, Oil Price Dips Further

Aayush Jindal

Aayush Jindal

Key Highlights

  • AUD/USD extended losses and traded below the 0.6750 support.
  • A key bearish trend line is forming with resistance near 0.6760 on the 4-hours chart.
  • USD/JPY accelerated further higher above the 144.00 level.
  • Crude oil price declined below the key $85.80 support zone.

 

AUD/USD Technical Analysis

The Aussie dollar started a strong decline from well above 0.7000 against the US Dollar. AUD/USD declined below the 0.6850 and 0.6800 support levels to move into a bearish zone.

Looking at the 4-hours chart, the pair settled below 0.6750, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The decline gained pace and the pair even broke the 0.6750 level. It tested the 0.6700 zone and started a consolidation phase. If there is a recovery wave, the pair might face resistance near the 0.6750 level.

There is also a bearish trend line forming with resistance near 0.6760 on the same chart. A clear move above the trend line resistance might start a move towards the 0.6800 level. The next major resistance is near 0.6820, above which AUD/USD might test the 100 simple moving average (red, 4-hours).

Conversely, the pair might continue to move down below 0.6700. The next major support is near the 0.6665 level. A downside break below the 0.6665 support might spark more losses. The next major support is near the 0.6620 level, below which the pair could even test the 0.6600 level.

Looking at crude oil price, there was a key downside break below the $85.80 support and there is a risk of more losses in the near term.

Economic Releases

  • ECB Interest Rate Decision – Forecast 0.5%, versus 0% previous.
  • Federal Reserve Chair Jerome Powell speech.