AUD/USD: 0.69 in focus, yearly lows – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the Aussie came under selling pressure this Monday, down to 0.7121 against its American rival, weighed by a decreasing business sentiment in China, where the MNI indicator for August fell down to 51.3, whilst July figure was revised down to 56.0 from a previous 57.1.

Key Quotes:

“Adding to the AUD decline were precious metals, as gold and silver gave back a good part of its latest gains.”

“As for the AUD/USD pair, the 1 hour chart shows that the 20 SMA heads lower around 0.7160, offering an immediate dynamic resistance, whilst the technical indicators are presenting tepid bounces from oversold levels, rather following price action than anticipating a strong recovery.”

“In the 4 hours chart, the pair has extended its decline below its 20 SMA and 200 EMA, both around 0.7190/0.7200, whilst the RSI maintains its bearish strength and anticipated further declines heading south around 44.”

“The pair has an immediate static support at 0.7110, the 38.2% retracement of the August/September decline, with a break below it favoring a return towards the 0.6900 multi-year low posted earlier this month.”
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Source:: FX Street