The Australian dollar has dropped through important chart support against the US dollar. The risk aversion stalking markets as the US/China trade dispute escalates is weighing on the pair. AUD/USD is threatening ten year lows.
The only lower mark since 2009 is the spike low at 0.6734 hit on 3 January 2019. Many traders view this low with suspicion as it occurrred in early Asia Pacific trading, after US markets closed and while Japan was on holiday. AUD/USD bounced amost immediately, encouraging the view that it was a false low.
The chart shows the importance of the break. After failing just above 0.7000, the drop through 0.6830 could mean further pressure to come. The MACD at the bottom of the chart indicates growing downward momentum, and is not yet in oversold territory. A test of the 0.6734 level could be near, and a fall through that level may encourage further selling.
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