AUD/USD technical analysis: Drops below 0.68, key indicator is teasing bearish reversal

• AUD/USD looks south with the daily MACD teasing a drop below zero.  
• A break above 0.6895 is needed to confirm a bullish reversal.  

Australian Dollar is being offered in response to the drop in the Australian full-time jobs in August.  

AUD/USD is now trading at session lows near 0.6790 and could continue to slide in the short-run, as the widely-tracked trend indicator – the moving average convergence divergence histogram – is about to turn bearish with a drop below zero.  

The 5- and 10-day moving averages (MAs) have also produced a bearish crossover.  

Further, the 14-day relative strength index (RSI) is reporting bearish conditions with a below-50 print.  

The case for a retest of recent lows below 0.67 would weaken if the pair rises above the daily high of 0.6831, although, as of now, that looks unlikely.  

Further, the outlook would turn bullish if and when the pair finds acceptance above 0.6895, invalidating the lower highs created on Sept. 12.  

Daily chart

Trend: Bearish

Technical levels