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.
Risk Warning: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full Risk Disclosure.