Technical Analysis – AUDUSD tumbles to new 28-month low
AUDUSD is plummeting for the third straight day towards a fresh 28-month low of 0.6580, remaining within a downward sloping channel since the beginning of June. The price had a pullback from the bearish cross within the 20- and 50-day simple moving averages (SMAs), keeping the medium-term outlook bearish.
Technically, the MACD is strengthening its negative momentum below its trigger and zero lines, while the RSI is approaching the 30 level.
Should weakness extend below the multi-month low of 0.6580 and the trough from May 2020 at 0.6570, support to downside movements could initially be detected from the April 2020 low at 0.6250.
Alternatively, the pair needs to overcome the 0.6680 resistance to meet a key barrier between the 20- and 50-day SMA at 0.6765-0.6875. The 0.6920 mark could also act as resistance too before a more important battle starts near the 0.7010 level and downtrend line.
In the medium-term picture, the sentiment turned bearish after the price dropped beneath the 0.7135 number. The negative slope in the 20-day SMA, which is moving lower from the 50-day SMA, is also adding bearish pressure.
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