AUDUSD Technical Analysis: Sellers Aim at Three-Year Support
- AUDUSD break of six-week uptrend hints downtrend has resumed.
- Support now at June 2016 floor, break may expose 2019 spike low.
- Long-term setup suggests AUDUSD heading to lowest in a decade.
The Australian Dollar broke rising trend support guiding the advance against its US counterpart since mid-June after recoiling from resistance capping gains since early December 2018. The breach paints the upswing as corrective and suggests that the dominant down move has been re-engaged.
Prices have gone on to overcome the July 10 low at 0.6911, setting the stage to challenge a defining support block running down through the January 2016 bottom at 0.6827. A daily close below that probably puts the 2019 spike low at 0.6744 in the crosshairs.
The first substantive layer of resistance is clustered around the 0.70 figure. However, buyers would likely have to manage a breach above falling trend resistance – now at 0.7069 – to convincingly neutralize the bearish bias and make a convincing case for upside follow-through.
- AUDUSD break of six-week uptrend hints downtrend has resumed.
- Support now at June 2016 floor, break may expose 2019 spike low.
- Long-term setup suggests AUDUSD heading to lowest in a decade.
The Australian Dollar broke rising trend support guiding the advance against its US counterpart since mid-June after recoiling from resistance capping gains since early December 2018. The breach paints the upswing as corrective and suggests that the dominant down move has been re-engaged.
Prices have gone on to overcome the July 10 low at 0.6911, setting the stage to challenge a defining support block running down through the January 2016 bottom at 0.6827. A daily close below that probably puts the 2019 spike low at 0.6744 in the crosshairs.
The first substantive layer of resistance is clustered around the 0.70 figure. However, buyers would likely have to manage a breach above falling trend resistance – now at 0.7069 – to convincingly neutralize the bearish bias and make a convincing case for upside follow-through.