- AUD/USD resumes its autumn decline after a brief pullback.
- The pair is close to oversold levels, however, with increased risks of an evolving recovery.
AUD/USD continues its October decline after a brief pullback. The pair is in a short to medium term downtrend which, given the technical maxim that “the trend is your friend”, is likely to extend south.
AUD/USD Daily Chart
Despite the recent run of weakness, the Australian pair is very close to reaching oversold levels (below 30) according to the Relative Strength Index (RSI) momentum indicator. If it becomes oversold based on a close, it will be a signal advising holders of short positions not to add to their bearish bets as there is an increasing risk of a recovery. The pair seems a little overextended and most of the decline seems to have come to an end.
Support from previous key lows lies at 0.6465 – 0.6475 (May 1 low, cluster of closes in early August), and if the pair falls to that level, it will likely bounce, consolidate, or possibly even reverse the trend.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
