AUD/USD Forecast: 0.6670, a multi-year low, exposed

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6760

NAB’s Business Confidence Index seen bouncing modestly in December to 1.
Australia will return from a long weekend, but that won’t help the Aussie.
AUD/USD trading at a 3-month low and poised to test 0.6670.

The AUD/USD pair collapsed, trading as low as 0.6751, a level that was last seen in October 2019. The pair is currently holding a few pips above this last, with the Aussie undermined by risk aversion. Australia celebrated a holiday at the beginning of the week, but that didn’t help the local currency, hurt by the fears related to the coronavirus outbreak, still not under control. Worldwide equities closed in the red, adding pressure on the pair. During the upcoming session, the country will publish the December NAB’s Business Confidence Index, seen at 1 from 0 previously, and the NAB’s Business Conditions Index, seen at 3 from 4 in November.

AUD/USD short-term technical outlook

The AUD/USD pair is oversold according to intraday charts, but there are no signs that it may change course in the upcoming sessions. The 4-hour chart shows that the pair is some 80 pips below a firmly bearish 20 SMA, while the 100 SMA has crossed below the 200 SMA above the shorter one. Furthermore, technical indicators stand within oversold levels, with the bearish momentum easing but still heading lower. The pair has now room to extend its decline toward 0.6670, a multi-year low set last 2019.

Support levels: 0.6750 0.6710 0.6670

Resistance levels: 0.6790 0.6820 0.6860

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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