FXstreet.com (San Francisco) - The Australian dollar fell sharply to the greenback on Wednesday, weighed by sinking stocks on Wall Street (risk averse), breaking through multiple levels of support to close down around 60 pips on the day, or 0.6 percent to 1.0373.

The AUD/USD selloff found support in a rising trend line around 1.0365 (Oct 8/23 troughs), but the bearish momentum now persists in early Asia and bears are threatening a break of the trend line; spot has just traded down to a new 8-day low of 1.0356, where price finds support at the 50-day EMA. “The trend line will tests latest bulls determination, as once below, the dip may extend near the 1.0300 price zone before buying results again attractive,” comments Valeria Bednarik, Chief Analyst at FXstreet.com.

AUD/USD currently trades at 1.0365; Ms. Bednarik identifies a noteworthy level of support at 1.0330. A push below the mentioned 1.0300 figure could open scope for an 80-pip run to 1.0220 (June 20 high). To the upside, the analyst observes resistance levels at 1.0400, 1.0445 and 1.0480.