The Australian dollar concluded lower against the buck Tuesday, shedding more than 90 points, or 1.50%.
Technical headlines saw H4 knock on the door of 0.65, though in early Asia is seen nursing losses off March’s opening level at 0.6464. South of this band, room to explore lower ground to 0.64 is visible, as the possibility of 0.65 capping upside today is certainly there. This is largely due to both weekly and daily timeframes suggesting lower levels after fading weekly resistance parked at 0.6677.
It may also interest some traders to note the relative strength index (RSI) is seen loitering a few points ahead of oversold waters.
According to the primary trend and higher-timeframe structure, the outlook is not bright for AUD/USD.
As a result, a H4 close below 0.6464 may be on the radar for some traders this morning, with the possibility of an extension to 0.64 and maybe beyond. Breakout traders may feel the evidence provided justifies a sell on the breakout candle’s close; others, however, could favour a retest motion off 0.6464 before committing to a position. This, of course, is trader dependent.
Disclaimer: The information contained in this material is intended for general advice only.