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Forex: AUD/USD testing key 0.9800 level

FXstreet.com (Barcelona) - The embattled AUD/USD has managed to fall lower into the depths of despair Thursday, recently touching the 0.9800 level during European trading (0.9797 intraday low). This weakness has not been seen in the pair since June 2012, leading many investors wondering where the bottom to this downtrend lies. In these moments, the cross is testing the 0.9800 level, having now incurred a staunch decline of -0.97% below its opening.

After breaking support at 0.9825, the ICN.com technical analyst team calculates the next short-term means of correction at 0.9770, down to 0.9740, and finally 0.9710. On the ascension, the AUD/USD will meet resistance at 0.9860, then 0.9880, and eventually 0.9900.

According to the ICN.com analysts, “The AUD/USD is in extremely critical levels close to 0.9825, which is a key interval determining either a bullish correction or the continuation of bearishness. The stochastic and the Relative Strength Index are reflecting oversold signals however, in turn, Linear Regression Indicators are trading with significant negativity. Due to the contradiction between momentum indicators and the pair's movement – existing at key 161.8% Fibonacci at 0.9825 – we prefer to stand neutral.”

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