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HomeUncategorizedAUD/USD Price Analysis: Bearish as sellers reclaim 100/50/20 DMA, focus on 0.6700

AUD/USD Price Analysis: Bearish as sellers reclaim 100/50/20 DMA, focus on 0.6700

  • AUD/USD tumbled more than 0.50% on Friday amid a stronger U.S. dollar.
  • Major declines each day of the week; down nearly 3% between Monday and Wednesday.
  • A break below 0.6869 would clear the way to 0.6800, followed by 0.6718.

AUD/USD refreshes four-week lows, ready to end the week with a massive 3.50% loss . The Australian dollar fell every day of the week, breaking dynamic resistance levels such as the 20-day and 50-day moving averages on the way down. At the time of writing, AUD/USD is trading at 0.6874, down 0.57%.

AUD/USD Price Analysis: Technical Outlook

AUD/USD has shifted from neutral to an up-to-down bias throughout the week. Notably, the week started mostly above the 20, 50 and 100-day moving averages. However, while the market’s “dovish” reaction to the FOMC minutes gave confidence in the Aussie, prices fell as buyers were unable to break above the 200-day SMA near 0.7130.

On Monday, it mainly fell below the 100-day moving average; as of Wednesday, the Australian dollar has fallen 200 points (2.99%) against the US dollar this week. . Also, as the downtrend gained momentum, the Relative Strength Index (RSI) plummeted from a reading near 55 to 46, implying that sellers have the upper hand.

Therefore, the first support level for AUD/USD will be the August low of 0.6869. Once cleared, the next demand area will be the July 19 daily low of 0.6802, followed by the July 15 low of 0.6718. AUD/USD Daily Chart

AUD/USD key technical level

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