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Technical Analysis – AUDUSD at new 6-year low, bearish bias remains

AUDUSD fell to a fresh 6-year low of 0.7214 on Wednesday but recovered to the 0.74 handle early on Thursday. Immediate resistance is expected at 0.7438, yesterday’s high and above this at 0.7532, the April low. A fall from current levels to break below the multi-year low of 0.7214 would accelerate a further decline to the 0.7140 area, which is the 76.4% Fibonacci retracement of the upleg from 0.6008 to 1.1078.

In the bigger picture, AUDUSD has been in a downtrend since the fall from 0.9400 in September 2014. The market is looking bearish based on technical studies – prices are below the daily Ichimoku cloud which is falling and the tenkan-sen is below the kijun-sen line. Also the 200-day moving average is declining.

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