FXStreet (Córdoba) – AUD/USD dropped further and reached at 0.7615 a new 1-month low before rebounding. During the last hour the aussie was able to move off session lows as it climbed to 0.7645.
Currently trades at 0.7635/40, a hundred pips below the level it had at the beginning of the day and headed toward the fifth consecutive daily decline. While the US dollar is among the top performers, the aussie together with the kiwi are among the worst, falling even against the yen.
AUD/USD short term outlook
The pair continues to move with a clear downside bias. Short term technical indicators show extreme oversold readings. So far the area above 0.7610 capped the decline. A break lower could trigger another decline . Below 0.7610 the next support level could be located at 0.7590 (March 18, 31 lows) and below 0.7550/55 (April lows).
On the opposite direction a recovery that sends the price above 0.7750, where a downtrend line originated at May highs currently stands, should weaken the US dollar.
(Market News Provided by FXstreet)