AUD/USD analysis: at its lowest for 2018 and bearish
|AUD/USD Current price: 0.7712
- Trade war fears keeping Aussie in sell-off mode.
- AUD/USD en route to 0.7550, December monthly low.
The AUD/USD pair settled at its lowest for this 2018 on Friday at 0.7712, as demand for commodity-linked currencies was undermined by escalating tensions about a trade war coming from the US. By the end of the week, US President trump announced he plans to impose additional tariffs on China, to compensate a $100B deficit with the country. Poor macroeconomic figures from Canada undermined further demand for commodity-related currencies while falling gold prices added to Aussie's weakness. The daily chart shows that the pair closed below the 61.8% retracement of the December/January rally at 0.7740, now the immediate support. Technical indicators in the mentioned chart entered bearish territory with the RSI heading firmly south around 35, as the pair broke below all of its moving averages, all of which favors additional declines as long as the price holds below the mentioned 0.7740 level. Shorter term, and according to the 4 hours chart, the pair is also biased lower, as technical indicators barely pared their declines within oversold territory, while the pair settled far below its moving averages, with the 20 SMA heading south almost vertically around 0.7840.
Support levels: 0.7700 0.7665 0.7630
Resistance levels:0.7740 0.7775 0.7810
View Live Chart for the AUD/USD
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