AUD/USD approaches new breakdown

<p>AUD/USD (daily chart shown below) has once again dropped below the 0.7700 support level and approached the new five-year low of 0.7625 that was hit […]</p>

AUD/USD (daily chart shown below) has once again dropped below the 0.7700 support level and approached the new five-year low of 0.7625 that was hit just last week.

That multi-year low was the latest culmination of a strong, five-month downtrend that saw price action drop from around the 0.9400 area in September down to the noted 0.7625 level last week.

The most recent plunge was prompted in early February by a surprise interest rate cut by the Reserve Bank of Australia from 2.5% down to 2.25%, with discussions of possible further rate cuts in the future.

AUD/USD daily chart


AUD/USD continues to face substantial downside pressure, and a drop below last week’s low could be imminent.

Any decline below the 0.7625 low would confirm a continuation of the steep bearish trend and should then begin to target the 0.7500 price objective, followed to the downside by the 0.7300 support level.

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