AUD/USD At Lowest Level In A Decade: More To Come?


For many traders, reading on led to a “sell first, ask questions later” response in risk assets. Everything from global equities to to growth-sensitive currencies have fallen sharply as markets increase bets on a coordinated global slowdown.

Coming on the back of the Tuesday’s RBA meeting, when , the has been particularly hard hit. The aussie has now reversed its entire rally from the first half of September against the US dollar and AUD/USD even peeked to its lowest level since March 2009, the depths of the Great Financial Crisis.


Source: TradingView,

As the chart above shows, the pair remains in a longer-term bearish channel dating back to early 2018. After last month’s bounce, the RSI indicator is no longer in oversold territory and the MACD continues to trend lower, below both its signal line and the “0” level, showing strong selling momentum.

In other words, the stage is set for a strong continuation lower if the break below this summer’s lows near 0.6680 is confirmed. To the downside, there’s little in the way of potential support until the mid- or even lower-0.6000s. From a fundamental perspective, another round of negative economic data or a re-escalation of US-China trade tensions (as soon as next week’s high-level meetings in Washington DC) could be the catalyst for another leg lower.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link