AUD/USD Price Analysis: Aussie tests breakdown at 0.6670, downside resumes towards 0.6500


  • Test of a broadening triangle has bolstered the odds of a downside move ahead.
  • The asset has surrendered the cushion of 20-EMA at 0.6635.
  • A drop in the bearish range by the RSI (14) will trigger a downside momentum.

The AUD/USD pair is dropping sharply after facing barricades around 0.6670 in the Asian session. The asset is expected to re-test a two-year low, recorded on Thursday at 0.6574. The major has refreshed its intraday low at 0.6616 and is looking to display more weakness.

On an hourly scale, the aussie bulls have witnessed a steep fall after displaying a textbook kind of test and drop of a broadening triangle chart pattern. The upward sloping trendline of the broadening triangle is plotted from September 16 high at 0.6724 while the horizontal support turned resistance now is placed from September 16 low at 0.6670.

The asset has dropped below the 20-period Exponential Moving Average (EMA) at 0.6635, which has weakened the aussie bulls further.

Also, the Relative Strength Index (RSI) (14) is on the verge of dropping into the bearish range of 20.00-40.00, which will trigger the downside momentum.

A drop below the two-year low at 0.6580 will drag the asset towards 26 May 2020 low at 0.6538, followed by the psychological support at 0.6500.

On the flip side, a break above Thursday’s high at 0.6670 will drive the asset towards September 18 high at 0.6734 and September 15 high at 0.6770.

AUD/USD hourly chart

AUD/USD

Overview
Today last price 0.6618
Today Daily Change -0.0026
Today Daily Change % -0.39
Today daily open 0.6644
 
Trends
Daily SMA20 0.6775
Daily SMA50 0.6882
Daily SMA100 0.6933
Daily SMA200 0.7097
 
Levels
Previous Daily High 0.6671
Previous Daily Low 0.6574
Previous Weekly High 0.6916
Previous Weekly Low 0.667
Previous Monthly High 0.7137
Previous Monthly Low 0.6835
Daily Fibonacci 38.2% 0.6634
Daily Fibonacci 61.8% 0.6611
Daily Pivot Point S1 0.6589
Daily Pivot Point S2 0.6533
Daily Pivot Point S3 0.6492
Daily Pivot Point R1 0.6685
Daily Pivot Point R2 0.6726
Daily Pivot Point R3 0.6782

 

 

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