**AUD/USD Further Weakens Below Key Moving Average, Trades at 0.6555**
*Adapted from an article by Arnold Cottrill for FXDailyReport.com, with additional analysis.*
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The Australian Dollar (AUD) faced renewed pressure against the US Dollar (USD) in recent trading sessions, as the currency pair extended losses and dipped below the critical 100-hour moving average (MA). This development has prompted further bearish sentiment among traders, with AUD/USD touching a low of 0.6555 during the day’s trading. This article delves into recent price action, important market factors driving the pair, and technical and fundamental data influencing forex traders’ strategies.
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## Recent Price Action and Technical Analysis
AUD/USD has been on a declining trajectory, underperforming amid both domestic and global catalysts:
– The pair slipped below the 100-hour MA, which acted as key intraday support near 0.6570.
– After breaching this level, bears pushed the rate to as low as 0.6555, signaling persistent negative momentum.
– On the hourly chart, sellers have managed to maintain control, with price action remaining below both the 100-hour and 200-hour MA.
– The 200-hour MA, another widely-watched indicator, looms near 0.6590 and now serves as an upper boundary for immediate resistance.
– The breach below moving averages signals increased selling pressure. Forex traders frequently view such crossovers as a sign of further weakness ahead.
– The hourly Relative Strength Index (RSI) echoed this bearishness, trending below 50 and suggesting increased selling interest.
### Key Support and Resistance Levels
A clear technical context helps traders identify trading opportunities and manage risk. The crucial levels to watch include:
**Support:**
– 0.6550: The immediate support and psychological threshold holding off further declines.
– 0.6525: If bearish momentum continues, this level could be tested soon.
– 0.6500: A round number and a notable horizontal support, likely to attract buyers if reached.
**Resistance:**
– 0.6580: The first upside obstacle, closely aligned with recent price congestion.
– 0.6590: Near the 200-hour MA, acting as a cap on upward moves.
– 0.6615: Further out, providing resistance where previous rallies stalled.
### Technical Summary Table
| Indicator | Value / Signal | Implication |
|——————|———————|—————————–|
| 100-hour MA | 0.6570 | Broken, now resistance |
| 200-hour MA | 0.6590 | Secondary resistance |
| RSI (hourly) | Below 50 | Bearish momentum |
| Support Levels | 0.6550 / 0.6525 | Watch for downside test |
| Resistance Levels| 0.6580 /
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