AUD/USD: down to key support, where next?
- AUD/USD is pressuring a key support zone.
- AUD/USD is weighed by a blow out in the commodity space and firmer greenback.
AUD/USD has been hit on the slide in confidence in the higher-betas while the index that measures the overall direction of commodity sectors known as the CRB index was in freefall for yet another consecutive day. Copper was a fade and also Gold dropped heavily to the year-long trend supporting area with a move that extended when the DXY popped on Washington kicking the can down the street again.
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The legislation was passed to extend the funding for the U.S. government through to Dec. 22, thus avoiding another government shutdown. On the back of that, AUD/USD was making fresh lows at the end of the NY session, down to 0.7505 from a high of 0.7569, extending losses from 0.8125 with eyes on the 0.7480 target.
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Valeria Bednarik, chief analyst at FXStreet explained that the AUD/USD pair trades a few pips above the mentioned low, maintaining its bearish strength according to intraday technical readings. "In the 4 hours chart, the price remains well below a bearish 20 SMA, currently at 0.7580, while the Momentum indicator consolidates within an oversold territory, as the RSI is also flat at 33. "The main support is now the 0.7500 figure, with a break below it exposing 0.7450, and with a weekly close below it favouring a continued slide towards 0.7250, the next big static support," Valeria added.
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