AUD/USD technical analysis: Approaching key support at 0.6899
|- AUD/USD's daily chart is biased toward the bears.
- The pair looks set to violate the bullish higher low pattern with a move below 0.6899.
AUD/USD is closing on 0.6899 – a bullish higher low created on May 30 – having dived out of an ascending trendline on Wednesday.
The currency pair is currently trading at 0.6912, representing a 0.20% drop on the day.
The pair closed at 0.6928 on Wednesday, confirming a downside break of the trendline trending higher from May 23 and May 31 lows.
The violation of the rising trendline is preceded by rejection at the 50-day moving average and is accompanied by a bearish crossover of the 5- and 10-day moving averages (MAs).
Add to that, risk aversion in equities and an uptick in Australia's underemployment rate in May, and the spot looks set for a drop below 0.6899. That would further bolster the bearish setup and allow retest of the recent low of 0.6865.
Daily chart
Trend: Bearish
Technical 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.