- AUD/USD’s next support comes from round numbers.
- Stochastic and RSI move toward oversold areas.
- AUD/USD has been in a significantly bearish structure over the last three months.
AUD/USD is currently flirting with the more-than-two-year low of 0.6180 that posted in the previous week, boosting the steep bearish tendency that started back in the end of September.
If the strong selling interest continues then traders could meet the next support at the 161.8% Fibonacci extension level of the up leg from 0.6350 to 0.6940 at 0.5980.
Also, before this line, the psychological numbers such as 0.6100 and 0.6000 may halt the bearish move.
On the other hand, a rebound off the 0.6180 support may send traders to the 20-day simple moving average (SMA) at 0.6250 ahead of the 0.6300-0.6335 resistance region, which stands near the falling trend line. A break of this region would open the door for a test of the 50-day SMA at 0.6410.
From a technical standpoint, the stochastic oscillator is heading towards the oversold area, while the RSI is ready to cross beneath the 30 level.
To conclude, AUD/USD has been in a significantly bearish structure over the last three months and only a closing session beyond the 200-day SMA may change the current outlook.