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  • Risk aversion weighed on high-beta currencies like the Australian Dollar.
  • Global central banks hiking rates and eyeing additional increases sounded recession alarms, dampening investors’ mood.
  • AUD/USD Price Analysis: Downward biased, after tumbling from weekly highs, heading to the 50-day EMA.

The Australian Dollar (AUD) slides against the US Dollar (USD) amidst a dampened market sentiment as an economic slowdown looms, after a central bank bonanza, featuring the US Federal Reserve (Fed), the Bank of England (BoE), and the European Central Bank (ECB) raising rates by 50 bps each. Additionally,  policymakers emphasized the need to do what’s needed to tackle inflation, which keeps investors uneasy. Therefore, the AUD/USD is trading at 0.6690, below its opening price.

AUD/USD Price Analysis: Technical outlook

After Thursday’s drop from around 0.6870 toward 0.6670, the AUD/USD is poised for a deeper correction. Market sentiment, and technical factors led by buyers unable to decisively clear the 200-day Exponential Moving Average (EMA) at 0.6831, exacerbated the Aussie Dollar’s fall toward current exchange rates. On its way south, the AUD/USD cleared the 20-day EMA at 06724, which halted Friday’s upside, as the AUD/USD is set to finish the week with losses of 1.60%.

Furthermore, a break below December 15 swing low at 0.6676 could exacerbate the AUD/USD’s fall toward the 50-day EMA at 0.6658, accelerating the downtrend to the 0.6600 mark. Oscillators like the Relative Strength Index (RSI) crossed to bearish territory, while the Rate of Change (RoC), is headed to the downside, cementing the case for a deeper correction.

As an alternate scenario, if the AUD/USD reclaims the 0.6700 mark, a test of the 200-day EMA at 0.6831 is on the cards. A breach of the latter will expose 0.6916 September’s 13 high, followed by the 0.7000 psychological mark.

AUD/USD Key Technical Levels

AUD/USD

Overview
Today last price 0.6686
Today Daily Change -0.0017
Today Daily Change % -0.25
Today daily open 0.6703
 
Trends
Daily SMA20 0.6738
Daily SMA50 0.6552
Daily SMA100 0.6673
Daily SMA200 0.6899
 
Levels
Previous Daily High 0.687
Previous Daily Low 0.6677
Previous Weekly High 0.6851
Previous Weekly Low 0.6669
Previous Monthly High 0.6801
Previous Monthly Low 0.6272
Daily Fibonacci 38.2% 0.675
Daily Fibonacci 61.8% 0.6796
Daily Pivot Point S1 0.663
Daily Pivot Point S2 0.6557
Daily Pivot Point S3 0.6437
Daily Pivot Point R1 0.6823
Daily Pivot Point R2 0.6943
Daily Pivot Point R3 0.7016

 

 

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