AUD/USD outlook: Downtrend extends into sixth consecutive day
|AUD/USD
AUDUSD hit three-week low on Monday after recovery attempts overnight were short-lived and bears regained full control.
The pair remains in a steep downtrend for the sixth straight day and retraced so far 61.8% of 0.6575/0.6798 rally.
Last week’s 1.3% fall left large bearish candle (the first week in red after five consecutive weeks of rally) and generated reversal signal on weekly chart.
Weakening daily studies (south-heading 14-d momentum is about to break into negative territory / 10/20/30 MA’s in bearish configuration) favor further downside, as Aussie dollar was hurt by falling copper price and rise in USCNY, following PBOC loan prime rate cut by 10 basis points.
Bears eye next significant supports at 0.6642/31 (top of thick daily cloud / Fibo 38.2% retracement of larger 0.6362/0.6798 uptrend) which are likely to produce strong headwinds, along with oversold daily studies.
Limited upticks should be ideally capped by 20DMA / last Friday’s top (0.6708) to keep bears intact.
Res: 0.6663; 0.6683; 0.6708; 0.6729.
Sup: 0.6642; 0.6631; 0.6605; 0.6580.
Interested in AUD/USD technicals? Check out the key levels
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.