AUD/USD Price Analysis: Refreshes 3-month lows, focus on risk assets

AUD/USD drops to fresh six-month lows near 0.6730.
The risk-off tone in the global equities seems to be weighing over the Aussie.

Omkar Godbole FXStreet Contributor

The Australian dollar continues to bleed amid coronavirus-led risk aversion in the equity markets.

AUD/USD pair traded at 0.6732 soon before press time. That was the lowest level since Oct. 16.

The pair had carved out a Doji candle and a Spinning Bottom candle on Tuesday and Wednesday, respectively, signaling seller exhaustion. So far, however, the bulls have failed to capitalize on that, allowing the pair to set fresh three-month low below Wednesday'slow of 0.6735.

Both the daily and weekly charts are biased bearish. As a result, further decline toward 0.67 cannot be ruled out.

That said, if the equity markets turn green, signaling a risk reset, the Aussie dollar will likely follow suit. On the higher side, resistance is seen at 0.6777 (Wednesday's high), above which the focus would shift to 0.6849 (Jan. 8 low).

At press time, the AUD/USD pair is trading at 0.6737 and the futures on the S&P 500 are reporting a 0.42% drop.

Daily chart

Trend: Cautiously bearish

Technical levels

AUD/USD

Overview
Today last price	0.6738
Today Daily Change	-0.0014
Today Daily Change %	-0.21
Today daily open	0.6752

Trends
Daily SMA20	0.6868
Daily SMA50	0.6868
Daily SMA100	0.6841
Daily SMA200	0.6874

Levels
Previous Daily High	0.6778
Previous Daily Low	0.6735
Previous Weekly High	0.6889
Previous Weekly Low	0.6817
Previous Monthly High	0.7033
Previous Monthly Low	0.6762
Daily Fibonacci 38.2%	0.6751
Daily Fibonacci 61.8%	0.6762
Daily Pivot Point S1	0.6732
Daily Pivot Point S2	0.6712
Daily Pivot Point S3	0.6689
Daily Pivot Point R1	0.6775
Daily Pivot Point R2	0.6798
Daily Pivot Point R3	0.6818

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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