AUDUSD has fallen sharply since its December highs above 0.7300. The pair has breached key support, the September 2015 low of 0.6906, to fall to a new multi-year low of 0.6826 last week. The market has been consolidating since then but the daily technical indicators are bearish. The tenkan and kijun lines are negatively aligned and the Ichimoku cloud is falling. There is scope to target the October 2008 low of 0.6008. RSI is in bearish territory and not yet oversold.
Looking at the bigger picture, since September 2014, prices have been falling from a peak of 0.9400 to last week’s low of 0.6826. The outlook remains very bearish as long as the market trades below the key 0.7000 level and prices remains below the 200-day moving average.
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