AUD/USD Price Forecast: Down move showing signs of resuming

AUD/USD appears to be resuming its downtrend after a brief pull back.
Should the pair break to lower lows it will signal a continuation of the trend south to lower targets.

Joaquin Monfort FXStreet

AUD/USD seems to be resuming the downtrending move it began at the late-September highs, following a brief pull back.

AUD/USD Daily Chart

On Monday it is down by a third of a percent and is threatening to break below the October 16 low at 0.6658.

A break below that level would set a lower low and confirm the pair’s medium and short-term downtrending bias. Such a move would probably reach a target at the green 200-day Simple Moving Average (SMA) at 0.6628. Further weakness would be dependent on breaking below that level as well as the key September 11 swing low and support level, at 0.6622.

However, if successful, the next bearish target would come in at the 0.6565 August 15 swing low.

The trend is bearish on the short and medium term timeframes – indicating a bias towards more selling – but sideways on the long-term.

Author

Joaquin Monfort

FXStreet

Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.

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