AUD/USD remains vulnerable near multi-year lows, below 0.6600 mark

AUD/USD opens with a bearish gap amid heightened coronavirus fears.
The global flight to safety benefitted the USD and added to the selling bias.
The technical set-up now seems to support prospects for further downfall.

Haresh Menghani FXStreet

The AUD/USD pair failed to capitalize on the attempted intraday bounce and remained well within the striking distance of over a decade low set earlier this Monday.

Having witnessed some intraday recovery on Friday, the pair opened with a bearish gap on the first day of a new trading week and was being weighed down by a combination of negative factors.

Growing market concerns over the economic impact of the coronavirus outbreak triggered a fresh wave of the global risk-aversion trade and weighed heavily on perceived riskier currencies, including the aussie.

Meanwhile, the global flight to safety benefitted the US dollar's safe-haven status against its Australian counterpart and further collaborated to the pair's heavily offered tone through the Asian session.

With Monday's downfall, the pair already seems to have found acceptance below the 0.6600 round-figure mark and hence, some follow-through slide, led by technical selling, now looks a distinct possibility.

In absence of any major market moving economic releases from the US, the broader market risk sentiment might continue to act as a key determinant and produce some short-term trading opportunities.

Technical levels to watch

AUD/USD

Overview
Today last price	0.6627
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	0.6627

Trends
Daily SMA20	0.6708
Daily SMA50	0.6827
Daily SMA100	0.6826
Daily SMA200	0.685

Levels
Previous Daily High	0.664
Previous Daily Low	0.6585
Previous Weekly High	0.6734
Previous Weekly Low	0.6585
Previous Monthly High	0.704
Previous Monthly Low	0.6682
Daily Fibonacci 38.2%	0.6619
Daily Fibonacci 61.8%	0.6606
Daily Pivot Point S1	0.6595
Daily Pivot Point S2	0.6562
Daily Pivot Point S3	0.654
Daily Pivot Point R1	0.665
Daily Pivot Point R2	0.6672
Daily Pivot Point R3	0.6705

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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