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AUD/USD Price Analysis: Reverses lower from 0.6184, Friday's close pivotal

  • The US dollar is drawing haven bids and pushing AUD/USD lower. 
  • Previous week's inside bar candle has made Friday's close pivotal. 

With the US dollar again attracting haven bids on coronavirus pandemic fears, the AUD/USD pair is feeling the pull of gravity in Asia.

Global markets continue to struggle as the virus outbreak in the US worsened over the weekend. The number of US deaths from coronavirus could reach 200,000 with millions of cases, the government's top infectious disease expert warned on Sunday.

The dollar index, which tracks the value of the greenback, is currently trading at 98.60, representing a 0.30% gain on the day. Meanwhile, AUD/USD is trading at session lows near 0.6141, having faced rejection at 0.6184 about 25 minutes ago.

From a technical perspective, the focus is on Friday's (weekly close). The pair created an inside bar candlestick pattern last week, signaling indecision among the sellers.

A close above 0.62 would confirm a bullish reversal and open the doors for a test of former support-turned-resistance at 0.6827 (January 2016 low). Alternatively, a close under 0.57 (last week's low) would imply a continuation of the bearish trend.

Weekly chart

Trend: Neutral

Technical levels

 

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