December 8, 2022

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AUD/USD continues downside track towards 0.7000

1 min read

AUD/USD down 0.3% on the day at around 0.7120

The aussie is getting no reprieve as we get into European morning trade, extending the downside move this week with the low today touching 0.7116.

The technical breakdown is seeing the downside momentum push further and given prevailing market sentiment, it is tough to see things change ahead of the weekend.

The daily close today will be crucial as it holds implications for the weekly chart:

AUD/USD W1 20-08

The 100-week moving average (red line) is being challenged right now and close/break below that at 0.7136 will only exacerbate the aussie’s woes over the past few days.

The 38.2 retracement level of the swing move higher from March last year to February this year at 0.7052 may offer some form of technical support for buyers moving forward but the 0.7000 handle is the likely key level to watch out for.

That is where sellers are arguably aiming towards right now and is a spot that buyers will have to defend as it is seen as a key psychological level in the trading battlefield.

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