AUD/USD – Downside Break Noted in Aussie to US Dollar Key Highlights
· The Aussie dollar struggled to hold gains above 0.7515-00 against the US dollar and moved down.
· The AUD/USD pair broke a crucial bullish trend line at 0.7470 on the 4-hours chart, signaling a downside break.
AUD/USD Technical Analysis
The Aussie dollar was in a nice uptrend until it faced resistances above 0.75000 against the US dollar. The AUD/USD pair started a downside move, and broke a major support at 0.7480-70.
Looking at the 4-hours chart, there are a couple of important breaks visible around 0.7480. First, the pair broke the 100 simple moving average at 0.7475. Second, there was a below a crucial bullish trend line at 0.7470.
The pair also moved below the 23.6% Fibonacci retracement level of the last wave from the 0.7328 low to 0.7517 high. All these are bearish signs, and suggests more declines below 0.7460.
Soon, the pair may break the 50% Fibonacci retracement level of the last wave from the 0.7328 low to 0.7517 high at 0.7422. Once there is a close below 0.7420-00, the pair could trade towards 0.7350.
