AUD/USD technical analysis: Now seems vulnerable to head back towards retesting multi-year lows
|- The pair continues to lose ground for the third straight session.
- The recent pullback has been along a descending trend-channel.
The AUD/USD pair remained under some selling pressure for the third consecutive session and dropped to near one-week lows, around the 0.6725 region on Wednesday.
The overnight sustained break below 200-hour EMA was seen as a key trigger for bearish traders and continued prompting some follow-through selling on Wednesday.
Meanwhile, the recent pullback from levels just above the 0.6800 handle – set last Friday – has been along a descending trend-channel formation on the 1-hourly chart.
This coupled with the fact that oscillators on the daily chart have again started gaining negative traction and maintained their bearish bias on hourly charts point to further decline.
A sustained break below the lower end of the mentioned trend-channel, currently near the 0.6720 region, will reaffirm the bearish outlook and prompt some fresh technical selling.
The pair might then turn vulnerable to break below the 0.6700 round-figure mark and aim towards testing the 0.6670 region – over a decade low touched at the beginning of this month.
On the flip side, any meaningful attempted recovery might now confront some fresh supply near the 0.6755-60 region (100-hour EMA), which coincides with the trend-channel resistance.
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.