AUD/USD Price Forecast: Downtrend resuming, odds favor bears
- AUD/USD breaks to new lower lows below 0.6650.
- The pair’s medium and short-term downtrend is probably resuming.
AUD/USD resumes its down move which began at the September 30 highs. On Wednesday the pair breaks below the former low of 0.6650. The establishment of a lower low indicates an extension of the short and medium-term downtrend, and given the technical analysis principle that “the trend is your friend” the odds favor more downside to come.
AUD/USD Daily Chart
The next bearish target lies 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, price would probably fall to 0.6565, the August 15 swing low.
Momentum as measured by the Relative Strength Index (RSI) is showing waning bearish pressure, however, which could indicate a lack of follow-through to the downside.
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.
