Search ForexCrunch
  • The pair continues to lose ground for the third straight session.
  • The recent pullback has been along a descending trend-channel.

The AUD/USD pair remained under some selling pressure for the third consecutive session and dropped to near one-week lows, around the 0.6725 region on Wednesday.

The overnight sustained break below 200-hour EMA was seen as a key trigger for bearish traders and continued prompting some follow-through selling on Wednesday.
Meanwhile, the recent pullback from levels just above the 0.6800 handle – set last Friday – has been along a descending trend-channel formation on the 1-hourly chart.
This coupled with the fact that oscillators on the daily chart have again started gaining negative traction and maintained their bearish bias on hourly charts point to further decline.
A sustained break below the lower end of the mentioned trend-channel, currently near the 0.6720 region, will reaffirm the bearish outlook and prompt some fresh technical selling.
The pair might then turn vulnerable to break below the 0.6700 round-figure mark and aim towards testing the 0.6670 region – over a decade low touched at the beginning of this month.
On the flip side, any meaningful attempted recovery might now confront some fresh supply near the 0.6755-60 region (100-hour EMA), which coincides with the trend-channel resistance.