AUD/USD: at fresh 2018 lows and counting
|AUD/USD Current price: 0.7561
- A holiday in Australia and New Zealand left the Aussie at the mercy of dollar's strength.
- Falling equities and commodities put additional weight on the commodity-linked currency.
With Australian and New Zealand markets closed this Wednesday, the Aussie was at the mercy of dollar's strength. The AUD/USD pair fell down to fresh 2018 low, and holds nearby ahead of the US opening, as the sour tone of equities and commodities also weighs on the Aussie. The US macroeconomic calendar has nothing to offer today, which means that yields will probably keep leading the way.
Technically, the pair is bearish despite oversold and has room to extend its slump down to 0.7501, completing there a full 100% retracement of the December/January rally. In the 4 hours chart, the 20 SMA has accompanied the decline, now providing a dynamic resistance around 0.7620, which is also a relevant high. In the same chart, the Momentum indicator extends its decline after late Tuesday's upward correction, while the RSI turned south, but lacks directional strength at 22, all of which supports additional declines ahead.
Support levels: 0.7550 0.7500 0.7470
Resistance levels: 0.7590 0.7620 0.7660
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