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AUD/USD Price Analysis: Sell-off continues, hits lowest since March 2009

  • AUD refreshes 11-year lows, ignoring RSI's oversold signals. 
  • The pair remains trapped in a falling channel on the daily chart. 

AUD/USD slipped to fresh 11-year lows soon before press time. 

The spot fell to 0.6536, the lowest level since March 2009. The previous multi-decade low of 0.6542 was reached on Wednesday. 

The 14-day relative strength index is reporting oversold conditions with a below-50 print. The price chart, however, is showing no signs of seller exhaustion. Traders, therefore, can ignore the RSI and expect the sell-off to continue, especially as the risk-off tone in the equity markets is worsening. 

The futures on the S&P 500 are now flashing 0.63% drop compared to 0.30% gain seen in early Asia. Meanwhile, the Asian stocks are a sea of red. As a result, the US equities look set to extend the four-day losing streak. Risk has been aggressively sold this week on fears the coronavirus pandemic will result in a marked slowdown in the global economy. 

From the technical perspective, the outlook will remain bearish as long as the daily chart falling channel is intact. 

Daily chart

Trend: Bearish

Technical levels

 

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