AUD/USD technical analysis: Drops below 0.68, key indicator is teasing bearish reversal

AUD/USD looks south with the daily MACD teasing a drop below zero.
A break above 0.6895 is needed to confirm a bullish reversal.

Omkar Godbole FXStreet Contributor

Australian Dollar is being offered in response to the drop in the Australian full-time jobs in August.

AUD/USD is now trading at session lows near 0.6790 and could continue to slide in the short-run, as the widely-tracked trend indicator - the moving average convergence divergence histogram - is about to turn bearish with a drop below zero.

The 5- and 10-day moving averages (MAs) have also produced a bearish crossover.

Further, the 14-day relative strength index (RSI) is reporting bearish conditions with a below-50 print.

The case for a retest of recent lows below 0.67 would weaken if the pair rises above the daily high of 0.6831, although, as of now, that looks unlikely.

Further, the outlook would turn bullish if and when the pair finds acceptance above 0.6895, invalidating the lower highs created on Sept. 12.

Daily chart

Trend: Bearish

Technical levels

AUD/USD

Overview
Today last price	0.6793
Today Daily Change	-0.0035
Today Daily Change %	-0.51
Today daily open	0.6828

Trends
Daily SMA20	0.6803
Daily SMA50	0.6847
Daily SMA100	0.6898
Daily SMA200	0.7008

Levels
Previous Daily High	0.687
Previous Daily Low	0.6812
Previous Weekly High	0.6895
Previous Weekly Low	0.6837
Previous Monthly High	0.6869
Previous Monthly Low	0.6676
Daily Fibonacci 38.2%	0.6834
Daily Fibonacci 61.8%	0.6848
Daily Pivot Point S1	0.6803
Daily Pivot Point S2	0.6779
Daily Pivot Point S3	0.6745
Daily Pivot Point R1	0.6861
Daily Pivot Point R2	0.6895
Daily Pivot Point R3	0.6919

Author

Omkar Godbole

FXStreet Contributor

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

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

XRP struggles around $1.40 despite institutional inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.