**AUD/USD Slips Below 100-Hour Moving Average, Trades Near 0.6555**
*Original reporting credited to Michael Thomson at FXDailyReport.com; further insights incorporated for comprehensive coverage.*
—
The Australian dollar, represented by the AUD/USD currency pair, has experienced a notable decline during the latest trading sessions. This downturn has prompted a breach below the critical 100-hour moving average, with the pair now positioning itself around the 0.6555 level. This movement underscores shifting sentiment in the currency market, influenced by a combination of domestic Australian data, broader US dollar trends, and evolving global risk dynamics. Below is a thorough exploration of the current AUD/USD landscape, the technical outlook, and the fundamental drivers shaping price action.
—
### Recent Price Action and Technical Analysis
– **AUD/USD Downtrend Intensifies**
During the week, the AUD/USD pair saw increased bearish momentum after failing to maintain support near the 0.6600 handle. Sellers gained stronger control, sending the pair beneath the 100-hour simple moving average (SMA), a commonly observed technical indicator. The breach of this average is interpreted as a signal of potential continuation to the downside.
– **Current Trading Level**
As of the latest session, the currency pair stabilizes around 0.6555. This level serves as both a psychological and technical area of interest.
– **Technical Levels to Watch**
– *Immediate Resistance*: Previous support areas and moving averages, particularly near 0.6580 and the 100-hour SMA, now serve as resistance levels on any attempted rebound.
– *Support Levels*: Downside supports are eyed at the 0.6530 zone, with further critical support at 0.6500. Extended selling could open a path toward the next support region at 0.6460 to 0.6470, which historically marked a demand zone during past corrections.
– **Technical Indicators**
– *Moving Averages*: With the price trading below the 100-hour MA, the short-term momentum continues to favor sellers.
– *Relative Strength Index (RSI)*: At the time of writing, the RSI is at a neutral zone but tilting towards the oversold level, indicating mounting selling pressure though not yet at extremes.
– *MACD*: The Moving Average Convergence Divergence signals a bearish crossover, further confirming short-term downside pressure.
– **Chart Patterns**
– Recent price structure suggests a possible descending channel on the hourly chart, highlighting lower lows and lower highs, which is typical in bearish phases.
– There is also a minor consolidation pattern around 0.6545 to 0.6560, suggesting that the market may be pausing before the next directional move.
—
### Fundamental Drivers Impacting AUD/USD
#### 1. Australia’s Economic Data
– **Inflation Readings**
Recent inflation prints out of Australia have shown moderation, coming in below market
Read more on AUD/USD trading.