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1 May 2020
AUD/USD Price Analysis: Trendline support at 0.6435 area under attack
- AUD/USD correction from 0.6570 high has reached trendline support at 0.6435.
- The Australian dollar is losing strength after failure to breach the 100-day SMA.
- Below 0.6435, the pair might extend its reversal towards 0.6300 and 0.6253.
The Australian dollar put an end on Thursday to a six-day rally from 0.6250 after reaching seven-week highs at 0.6570, and the pair has been correcting lower over the last sessions. The aussie has depreciated nearly 2% from Thursday’s peak so far, to test trendline support from March 20 low, right now at 0.6435.
The daily chart shows the pair pulling back after having found resistance at the 100-day SMA at 0.6568, and testing the trendline supporting the last six weeks’ rally.
A clear confirmation below this level might increase bearish momentum, sending the pair to test the 50-day SMA at 0.6300 area with next potential support at April 21 low, 0.6253.
