Technical Analysis – AUDUSD sinks to two-month low; support at 0.6500.
August 8, 2023 2:28 pm
AUDUSD fell by 1.0% to a new two-month low of 0.6498 due to China’s disappointing trade figures, becoming the worst performer among major pairs today.
The 0.6500 level is being re-examined and there is hope that the pair could pivot at this point as it did last week. Nonetheless, the falling RSI and stochastic oscillators on the four-hour chart have yet to confirm oversold conditions, keeping the bias in the bearish area.
Should the bears stay in charge, the focus will turn to the May’s trough of 0.6457. A close below that floor would downgrade the short-term outlook, likely causing a sharp decline towards the 0.6400-0.6385 territory and the 2020 support trendline.
On the upside, the 20-period exponential moving average (EMA) could cap the price at 0.6555 ahead of the 50-period EMA at 0.6600. A step higher could stall around the 0.6640 constraining zone before heading to the 200-EMA at 0.6680.
In brief, the short-term risk remains skewed to the downside for AUDUSD, with the confirmation likely coming below 0.6500.
In fundamentals, China’s CPI inflation data for July could be the next challenge for the market on Wednesday at 01:30 GMT.
AUDUSD fell by 1.0% to a new two-month low of 0.6498 due to China’s disappointing trade figures, becoming the worst performer among major pairs today.
The 0.6500 level is being re-examined and there is hope that the pair could pivot at this point as it did last week. Nonetheless, the falling RSI and stochastic oscillators on the four-hour chart have yet to confirm oversold conditions, keeping the bias in the bearish area.
Should the bears stay in charge, the focus will turn to the May’s trough of 0.6457. A close below that floor would downgrade the short-term outlook, likely causing a sharp decline towards the 0.6400-0.6385 territory and the 2020 support trendline.
On the upside, the 20-period exponential moving average (EMA) could cap the price at 0.6555 ahead of the 50-period EMA at 0.6600. A step higher could stall around the 0.6640 constraining zone before heading to the 200-EMA at 0.6680.
In brief, the short-term risk remains skewed to the downside for AUDUSD, with the confirmation likely coming below 0.6500.
In fundamentals, China’s CPI inflation data for July could be the next challenge for the market on Wednesday at 01:30 GMT.
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