October 10, 2022 12:59:19
The Australian dollar lost nearly 100-pip on Monday as the fresh trading week begins. The pair opened the session on a higher note but failed to sustain the gains. The bears took no time to take the charge and dragged the spot down to trade with a negative bias. The downside is the extension of the previous week.
The bull’s strength is waning gradually on the daily chart. As the sellers managed to flip the 0.6420 support level into resistance. On September 15, the pair broke the vital support zone of 0.6720. Since then the price depreciated around 400-pip. The bulls will soon need to show renewed tenacity in order to reverse the current course of action and avoid a drop toward 0.6000.
AUD/USD fell nearly 1% on Monday. Further, it dumped and tested the intraday low of 0.6288. The current downtrend is the extension of the movement that began on April 4. The bearish trend line acted as the upside filter for the price action. The bulls attempted to breach the trend line on June 2 but a futile action. After forming the bottom near 0.6680, once again the bulls carry forward the gains and this time breached the mentioned trend line. However, these were not sustainable gains as the price slid along with the downside trend line. Further, it sliced below the critical trend junction on September 27.
This week too echoes a similar tone as the price continues to perform under the pressure. As hinted by the 20-day and 50-day exponential moving average crossover. A daily close below the low of the session would pave the way for fresh yearly lows.
on the other hand, An oversold RSI indicated a short-term bounce back in the price. If the price closes above 0.6380 then the price could travel back to 0.6500.
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