**AUD/USD Dips Below 100-Hour Moving Average, Testing Key Support Near 0.6697**
*Adapted from a report by Tim Bossmann, FX Daily Report. Additional research included.*
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The Australian dollar slipped against the U.S. dollar recently, breaching the 100-hour simple moving average (SMA) and finding itself trading around the 0.6697 mark. This movement highlights growing concerns about Australia’s economic outlook and continuing demand for the greenback amid global uncertainty. In this article, we’ll explore the technical landscape surrounding AUD/USD, consider driving macroeconomic factors, and provide perspectives on what traders might expect moving forward.
**Recent Decline in the AUD/USD Pair**
As of the latest session, AUD/USD has declined by about 0.16 percent after opening near 0.6707 and dropping below the 100-hour moving average. This slip is part of a recent downward correction within a broader context where the pair previously attempted a moderate rebound. Market participants note that the slide comes as traders reassess risk appetite and position themselves ahead of key economic data releases from both Australia and the U.S.
Key points about the recent AUD/USD movement:
– The currency pair has fallen from session highs after failing to maintain upward momentum above 0.6700.
– It now trades slightly below the 100-hour SMA, a widely tracked technical level, signaling growing weakness.
– This break attracts further selling interest among traders relying on short-term technical signals.
**Technical Analysis: Levels and Indicators**
From a technical perspective, several important support and resistance levels are framing near-term price action for AUD/USD.
– **Immediate Support:** The area near 0.6690-0.6700 is acting as immediate support, marking the lower bounds of recent consolidation.
– **Next Levels Down:** Should sellers press their advantage, the next support exists at 0.6665 (previous swing low), followed by 0.6640 (recent structural support).
– **Critical Resistance:** To the upside, resistance is found at 0.6720 (former support now turned resistance after the SMA breakdown), with stronger resistance at 0.6742.
– **200-Hour SMA:** This moving average sits near 0.6719, adding technical weight to the near-term resistance zone.
– **Momentum Oscillators:** The Relative Strength Index (RSI) has cooled toward neutral, reflecting fading upward momentum. Further declines into oversold territory could prompt a technical bounce.
**Daily Chart Insights**
On the broader daily chart, AUD/USD had attempted to move higher from its 200-day moving average in recent weeks but stalled well short of major resistance at 0.6800.
– The currency remains trapped within a wider 0.6620 to 0.6800 range.
– A decisive break below 0.6680 could force the pair toward the lower band of its multi-week channel, with sellers eyeing further downside.
**Macro Fundamentals
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