AUDUSD unlocks 11-week low; dives below 0.7100

AUDUSD plunged to an eleven-week low of 0.7074 earlier today, continuing the strong selling interest from the 0.7457 resistance level. The price is also travelling well below the 200-day simple moving average (SMA) with the technical indicators confirming the negative prospects. The MACD is holding below its trigger and zero lines, while the RSI is standing near the neutral threshold of 30.

A failure to jump above the 0.7100 round number again could send the price down to 0.7050, a challenging point over the last two months. Lower support could next be found around 0.6990, ahead of the 18-month low of 0.6965.

Alternatively, if 0.7100 proves easy to get through, the spotlight will turn to the inside swing low of 0.7165. On top of that, the bulls would need to clear the 200-day SMA currently at 0.7386 to push the rally towards the 0.7340 barrier. Above this line, the price could meet the bearish crossover within the 20- and 40-day SMAs at 0.7377.

In the medium-term picture, AUDUSD turned neutral after violating the 200-day SMA to the downside starting from the 0.7660 peak. Should the market continue the recent sell-off and tumble below the 18-month low of 0.6965, the outlook may turn strongly bearish. 

About the author

Melina Deltas

Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups. Her technically focused method looks mainly at price action across multiple time frames to capture big moves that develop over the years. She has more than 3 years of experience in analyzing financial markets, specializing in forex, indices, and commodities. Melina studied Pure Mathematics at Lancaster University and has a Master's Degree in Monetary and Financial Economics from the University of Cyprus. Currently, she is an associate member of the Society of Technical Analysts (STA) and a Certified Financial Technician (CFTe).

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