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Analysis of the AUD/USD FX: Approaches a Nine-Day Low Near 0.6700 Due to Widespread USD Strength
The powerful US dollar influenced the AUD/USD's downward trajectory, which peaked at 0.6701 after the 'hawkish' Fed release. Possible golden cross on the horizon as the 50-day moving average approaches the 200-day moving average, indicating an uptrend to 0.6800. Maintaining a level below 0.6800 could propel the AUD/USD pair towards additional support levels, namely 0.6650 and 0.6576/82, which would be significant targets.
The AUD/USD fell to its lowest level in nine days, 0.6701 USD, and extended its losses for four consecutive days due to widespread US Dollar (USD) strength. The release of "hawkish" meeting minutes by the Federal Reserve and US economic data that was disclosed on Wednesday maintained downward pressure on the pair, which closed at approximately 0.6724 and lost close to 0.50%.
The pair printed a three-dark-crowds chart pattern on the daily chart, which found support near the 0.6700 mark. The AUD/USD has pared back some of its losses since it reached that level, while the 50-day moving average (DMA) approaches the 200-day moving average (DMA) in preparation for a golden cross. The pair could then recommence its ascent and potentially encounter the 0.6800 level, which is accompanied by the monthly high of 0.6871 from December. When the latter is breached, the 0.6900 mark becomes exposed.
Conversely, if the AUD/USD pair remains below 0.6800, that could create an opportunity to examine the 0.6700 level. The subsequent support level would be established at 0.6650, after which the confluence of the 50 and 200-DMAs would occur at approximately 0.6576/82.
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