- AUD/USD remained under some heavy selling pressure for the second straight session on Thursday.
- The set-up remains firmly in favour of bearish trades and supports prospects for a further downfall.
- Attempted recovery move is likely to confront stiff resistance near the 0.7650 support breakpoint.
The AUD/USD pair added to the previous day's losses and witnessed some heavy selling for the second consecutive session on Thursday. The downward trajectory dragged the pair to fresh one-month lows during the first half of the European session, with bears now looking to extend the momentum further below the 0.7600 mark.
From a technical perspective, the AUD/USD pair on Wednesday decisively broke through a short-term ascending trend-line support extending from early November. A subsequent slide below the 23.6% Fibonacci level of the 0.6990-0.7820 strong positive move might have already set the stage for additional near-term weakness.
The bearish outlook is further reinforced by the fact that technical indicators on the daily chart have just started driving into the negative territory. Some follow-through selling below 50-day SMA support, around the 0.7585 region, will reaffirm the bearish bias and turn the AUD/USD pair vulnerable to slide further.
The downward trajectory might then drag the AUD/USD pair towards the key 0.7500 psychological mark. The mentioned level coincides with the 38.2% Fibo. level, which if broken decisively will be seen as a fresh trigger for bearish traders. This, in turn, would pave the way for an extension of the ongoing corrective slide.
On the flip side, any attempted recovery runs the risk of fizzling out rather quickly near the 0.7650 horizontal support breakpoint. This, in turn, should now act as a strong barrier, which if cleared decisively might trigger some short-covering move and push the AUD/USD pair back towards the 0.7700 round-figure mark.
AUD/USD daily chart
Technical levels to watch
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays below 1.0700 after US data
EUR/USD stays in a consolidation phase below 1.0700 in the early American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold trades on the back foot, manages to hold above $2,300
Gold struggles to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to reverse its direction.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.