AUD/USD: bearish technicals
AUD/USD is capped below $0.9065. Yesterday Aussie lost more than 100 pips and touched the $0.9000 psychological handle. Today Australian currency got hit by bigger than expected trade deficit.
Note that the pair breached support line connecting 2008 and 2013 lows. This suggests that Aussie’s downtrend is likely to continue. Below $0.9000 there will be support at $0.8950 (100-month MA) and $0.8894 (August low) ahead of $0.8847 (2013 low).
The pair’s oversold and there’s divergence on H4 (MACD, RSI). The bearish scenario, however, will stay in place unless AUD/USD returns above December high at $0.9170. There’s also resistance at $0.9115.
Chart. Daily AUD/USD