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Eightcap Forex technical insights; AUDUSD bear drives on, are we close to being oversold?
The AUDUSD closed below .7050 for the first time since 2015 at the end of last Friday’s session. Fed policy and RBA policy have been one of the factors driving the AUD lower. Chinese trade war worries and emerging market worries have also not helped the AUD in recent months. The current downtrend has been running since January this year with a current decline of 995 pips.
Looking at the monthly chart we can see key support at .7000 the last test of this level was in February 2016. The last time price closed below .70 was way back in 2009. While we see the main fundamentals remain in place price looks to have a good chance to retest this support area. On the short-term, the weekly extended lower by 179 pips in what could be seen as an exhaustion bar. Technically we could see retrace but buyers should be wary of a final extension that could test the monthly support low.
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