AUD/USD Price Analysis: Hits nine-day low at around 0.6700 on broad USD strength
- AUD/USD's downward trajectory influenced by strong US Dollar, dropping to 0.6701 following 'hawkish' Fed release.
- Potential golden cross on the horizon as 50-day moving average nears 200-DMA, hinting at possible uptrend to 0.6800.
- Staying below 0.6800 could lead AUD/USD towards further support levels, with 0.6650 and 0.6576/82 as key targets.
The AUD/USD dropped to a nine-day low of 0.6701 and extended its losses to four straight days, courtesy of broad US Dollar (USD) strength across the board. US economic data revealed on Wednesday, alongside the release of “hawkish” meeting minutes by the Federal Reserve, kept the pair downward pressured, trading at around 0.6724 and losing close to 0.50%.
The daily chart portrays the pair printed a three-dark-crowds chart pattern, which found support at around the 0.6700 figure. Since reaching that level, the AUD/USD trimmed some of its losses, at the same time the 50-day moving average (DMA) approaches the 200-DMA to form a golden cross. In that outcome, the pair could resume its uptrend and test the 0.6800 figure, followed by December’s monthly high of 0.6871. A breach of the latter will expose the 0.6900 mark.
On the flip side, if the AUD/USD stays below 0.6800, that could open the door to test the 0.6700 figure. Once surpassed, the next support would emerge at 0.6650, followed by the confluence of the 50 and 200-DMAs at around 0.6576/82.
AUD/USD Price Action – Daily Chart
AUD/USD Key Technical Levels