AUD/USD analysis: testing 2018 lows, poised to break lower

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7414

Australian dollar suffering the most of US-China trade war.
The poor performance in equities adds to the pair's weakness.

The Aussie was among the worst performers at the beginning of the week, hurt by concerns about the escalating trade war between the US and China, as the Australian economy relies on exports, mostly to this last. The AUD/USD pair flirted with the yearly low of 0.7411 posted last May and heads into the Asian opening barely holding above the level. During the upcoming Asian session, Australia will release the Q1 House Price Index, expected to have fallen 1.0% from a previous 1.0% gain. More relevant, the RBA will release the Minutes of its later meeting, which may offer additional insights into the cautious wording over the international backdrop. The pair is markedly bearish, down for a third consecutive day and further retreating from a major Fibonacci resistance. In the 4 hours chart, the 20 SMA heads south almost vertically well above the current level and moving away from the larger ones. Technical indicators in the mentioned chart remain at oversold levels, with the RSI resuming its decline, currently at 23, signaling a bearish breakout ahead.

Support levels: 0.7410 0.7370 0.7335

Resistance levels: 0.7480 0.7515 0.7565

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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