AUD/USD Price Analysis: Sell-off extends below 0.7600 after the rising channel breakdown
|- AUD/USD eyes deeper losses after the rising channel breakdown on 1H chart.
- An hourly close below 200-HMA exacerbated the pain in the aussie.
- RSI probes the oversold region, suggesting more room to the downside.
AUD/USD has breached the 0.7600 support area, looking to extend the sell-off from near 0.7660 region.
The US dollar’s rebound, Australia’s covid vaccine concerns and RBA’s warning over the lending risks collaborated to the 60-pips slide in the major.
From a near-term technical perspective, the spot has dived out from a nine-day-old rising wedge channel on the hourly chart. The price confirmed a channel breakdown following an hourly close below the rising trendline support at 0.7618.
The downward pressure on the aussie accelerated after the bears took out the critical horizontal 200-HMA at 0.7623 on a sustained basis.
The Relative Strength Index (RSI) points south, now probing the oversold region, suggesting that there is additional room to the downside.
Note that the pair trades below all the major averages on the said time frame, with the bears now targeting the psychological 0.7550 level.
Further south, the April 1 low of 0.7531 could be tested.
AUD/USD: Hourly chart
Any pullback attempts could meet initial demand at the pattern support now resistance, now at 0.7619.
The next upside hurdle awaits at the 200-HMA en route to the 0.7650 mark.
AUD/USD: Additional levels
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