- AUD/USD plunged more than 0.50% on Friday amidst a buoyant greenback.
- The major slid in each day of the week; losing between Monday-Wednesday almost 3%.
- A break below 0.6869 clears the path towards 0.6800, followed by 0.6718.
The AUD/USD refreshed four-week lows preparing to finish the week with hefty losses, equal to 3.50%. The Aussie tumbled in each day of the week, breaching dynamic resistances, like the 20 and 50-day EMA, on its way down. At the time of writing, the AUD/USD is trading at 0.6874, down 0.57%.
AUD/USD Price Analysis: Technical outlook
The AUD/USD shifted from neutral-upwards to downward-biased throughout the week. Worth noting that the major began the week above the 20, 50, and 100-DMAs. However, it tumbled courtesy of buyers unable to crack the 200-day EMA around 0.7130s despite the market’s “dovish” FOMC minutes reaction, which set the Aussie’s faith.
On Monday, the major plummeted below the 100-day EMA; by Wednesday, the AUD/USD was already 200-pips (2.99%) down in the week. Furthermore, as the downtrend gathered momentum, the Relative Strength Index (RSI) plunged from readings nearby 55 to 46, meaning sellers were in charge.
Therefore, the AUD/USD first support will be August low at 0.6869. Once cleared, the next demand zone will be the July 19 daily low at 0.6802, followed by the July 15 low at 0.6718.
AUD/USD Daily chart