Aussie heading south back towards 0.9600

FXstreet.com (Barcelona) - The Aussie has continued to previous losses, edging down another 22 pips to close the day at 0.9635 which is just above the lows set last week at 0.9593.

According to Val Bednairk of FXStreet.com, "the AUD/USD tests its daily lows after a brief attempt of recovery was halted around 0.9660. Despite the slow motion in markets today, the bearish trend of the pair continues developing, with little scope to advance, as US futures trade in red. The hourly chart shows a pretty neutral stance, while in the 4 hours chart technical readings still hold to the negative bias."

The FXStreet.com Trend Index remains in Slightly Bearish set up on the daily chart, while the OB/OS index reads Oversold. The RSI (14) is now showing multiple “bullish divergences” as price continues to make new lows but momentum does not. This development could help provide a short term bounce, but should not be looked at as an overall trend change. Initial resistance sits at 0.9655 (the 50dma on 1 hour chart), followed by 0.9730 (previous support, now resistance). First support sits at 0.9615 (previous day low), followed by 0.9593 (previous week low).