AUD/USD Price Analysis: The pair moves into a strong support area
|- AUD/USD has fallen another 0.37% on Thursday.
- There could be some relief on its way with some strong support.
AUD/USD daily chart
The Australian dollar has been the worst hit during the recent bout of dollar strength. The market is heading to a pretty formidably zone at the 0.70 area. Adding to the strength of the psychological area is the 23.6% Fibonacci retracement and black support like which was a strong resistance back on 31/12/2020.
If this level fails there is another level to watch at the red horizontal line near 0.6836. This zone was important in early June as it acted as the main consolidation low before the really continued in mid-July.
The indicators are understandably in a very bearish position. The MACD histogram is red and the signal lines are just about to cross over to the downside. The Relative Strength Index is showing a bullish sign even though it is in a bearish position. This is called a bullish failure swing, it is when the market is making higher lows but the indicator makes a lower low (often moves into oversold).
There could be a small move back up in the near term but longer term this does seem like a decent reversal to the downside.
-637365747730836295.png){kind=link}
Additional levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.