AUD/USD Hovers Around 6-Year Low Ahead of Aussie Employment News
The AUD/USD pair closed last week at its lowest level in over six years, as the liquidation of the antipodean currency remains firm in place.
The Aussie was also affected by the sharp slide in metals, as except for platinum, all closed in the red last Friday.
The overall negative sentiment has increased these last few weeks amid of the Chinese economic slowdown weighing on the local recovery.
Later on this week, Australia will release its monthly employment figures, and a positive reading may take off some of the pressure over the local currency.
Nevertheless, the pair has broken below a long term ascendant trend line coming from September 2001 low at 0.4815, currently around 0.7160, with high bearish implications for the upcoming weeks.
The daily chart shows that the technical indicators continue to head south, despite being I extreme oversold territory, whilst the 20 SMA has accelerated its decline well above the current price.
In the 4 hours chart, the technical indicators also head lower in oversold levels, with no signs of exhaustion at the time being whilst the 20 SMA provides a strong dynamic resistance around 0.6990 in the case of an upward correction.