AUD/USD Downtrend Pauses at Key Support
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<h2>Australian Dollar, AUD/USD, Moving Averages – Technical Update:</h2>
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<li><span>Australian Dollar</span><span> on course for worst month since February</span></li>
<li><span>AUD/USD</span><span> trend remains bearish, but key support reinforced</span></li>
<li><span>What are key levels to watch in the coming 24 – 48 hours?</span></li>
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<p>At -4.5%, the Australian Dollar is on course for the worst month against the US Dollar since February. Furthermore, AUD/USD has declined for 5 consecutive weeks which was last seen in October 2022. A further 6th would mean the longest losing streak since February 2020. How is the technical landscape shaping up for the Australian Dollar in the near term?</p>
<p>On the daily setting, the exchange rate has dropped to the 78.6% Fibonacci retracement level of 0.6382 looking at the chart below. Since then, prices have been struggling to break lower, establishing and reinforcing support.</p>
<p>Meanwhile, a bearish Death Cross between the 20- and 50-day Moving Averages remains in play. In the event of a turn higher, these lines may hold as key resistance, maintaining the near-term downside focus. Extending losses places the focus on the November low of 0.6272 before the 2022 bottom of 0.6170 comes into focus.</p>
<p><img decoding="async" loading="lazy" src="https://a.c-dn.net/b/0iDdYW/image1.png" alt="image1.png" data-image-original-width="1470" data-image-original-height="758" width="1470" height="758" class="dfx-lazyload" style="padding-bottom: calc(758 / 1470 * 100%);" /></p>
<p><span>Chart Created in TradingView</span></p>
<p>Zooming in on the 4-hour chart offers a clearer picture of how the short-term technical landscape is shaping up. Using the chart below, we can see that near-term rising support from August 17th has been helping stabilize the Australian Dollar. This is as the 50- and 100-period Moving Averages are slowly coming closer into focus.</p>
<p>Immediate resistance is a combination of the 100% Fibonacci extension level of 0.6466 as well as the 50-period line. Clearing higher places the focus on the 78.6% point at 0.6525 as well as the 100-period MA. The latter might reinstate the downward technical bias. Falling under the 138.2% point at 0.6362 on the other hand opens the door to extending lower towards the November low.</p>
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Recommended by Daniel Dubrovsky
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How to Trade AUD/USD
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<p><img decoding="async" loading="lazy" src="https://a.c-dn.net/b/1trX7i/image2.png" alt="image2.png" data-image-original-width="1470" data-image-original-height="758" width="1470" height="758" class="dfx-lazyload" style="padding-bottom: calc(758 / 1470 * 100%);" /></p>
<p><span>Chart Created in TradingView</span></p>
<p><span>— Written by Daniel Dubrovsky, Senior Strategist for DailyFX.com</span></p>
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<br /><a href="https://www.dailyfx.com/analysis/australian-dollar-price-action-setups-aud-usd-downtrend-pauses-at-key-support-20230821.html">Source link </a></p><p>The post <a href="https://forextraderhub.com/aud-usd-downtrend-pauses-at-key-support.html">AUD/USD Downtrend Pauses at Key Support</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>
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