AUD/USD falls to fresh one-week low below 0.6000

Technical Analysis

Author: Justin Low | audusd

AUD/USD is down by over 1% on the day now

AUD/USD H1 03-04
The slippery slope starts to open up again in AUD/USD as sellers drive the pair to the downside on a break below the key hourly moving averages.

As such, the near-term bias remains more bearish now with a firm break below 0.6000 to solidify the downside momentum. Further support is now only seen around the 38.2 retracement level @ 0.5945 before the 26 March low at 0.5870 comes into play.

The move lower continues to be driven by dollar gains today as we see the greenback start to come into favour once again this week.

With the technical picture in EUR/USD also favouring the dollar much more now and EM flows staying supportive, the dollar sits in a good spot over the last few sessions with the the technical picture elsewhere - such as AUD/USD above - also looking better.

The only potential setback now is that the Fed may come in to intervene with more liquidity measures and we may see more distracting headlines to bolster risk sentiment.

But otherwise, the gradual grind lower in the risk narrative should continue to see the dollar outperform against risk currencies for the time being.

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