AUD/USD analysis: at fresh six-month low, bearish trend just resuming
|AUD/USD Current price: 0.7523
- Australian trade surplus shrank by more than expected in October.
- Investors cautious ahead of Friday US Nonfarm Payroll report.
Australian dollar's decline extends to fresh 6-month lows against a firmer greenback, after the country's October trade balance released overnight resulted in a big disappointment. The trade surplus was down to a measly $0.1bn, from $1.6bn in September. Imports were 2% higher, while exports fell 3% with metal ores being the main negative on a dip in the iron ore price. The AUD/USD pair trades at 0.7523, ahead of US minor employment data that anyway matters ahead of the US Nonfarm Payroll report this Friday. Volatility is quite limited at the time being, with the dollar stronger against all of its major rivals.
Technically the pair presents a strong bearish momentum according to intraday technical readings, as in the 4 hours chart, the price accelerated further after breaking below a now bearish 20 SMA, while the Momentum indicator heads lower almost vertically, entering oversold territory, as the RSI also heads south, currently at 31. The pair has room now to test the 0.7500 figure, with a break below it exposing 0.7450, and with a daily close below it favoring a continued slide towards 0.7250, the next big static support.
Support levels: 0.7500 0.7450 0.7420
Resistance levels: 0.7570 0.7600 0.7640
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