AUDUSD Price Analysis: Struggles at the 20-DMA and dives beneath 0.6300
03.11.2022, 20:52

AUDUSD Price Analysis: Struggles at the 20-DMA and dives beneath 0.6300

  • AUDUSD reached a new weekly low at around 0.6271 after hitting a weekly high at 0.6491.
  • If the AUDUSD registers a daily close below 0.6300, it could exacerbate a fall towards 0.6209 ahead of testing the YTD low at 0.6169.

The AUDUSD plummets below the 0.6300 figure and beneath the 20-day Exponential Moving Average (EMA), extending its fall for six consecutive days after failing to crack the 50-day EMA at around 0.6548 since October 27. Hence, the AUDUSD tumbled and is trading at 0.6289, below its opening price by 0.86%, at the time of typing.

AUDUSD Price Analysis: Technical outlook

After the Federal Reserve hiked rates on Wednesday, the AUDUSD remains downward biased, per the daily chart. The Fed day left a huge 140-pip candle, shy of testing the 50-day EMA, which pierced the 20-day EMA. But it retreated later in remarks by Federal Reserve Chair Jerome Powell, as the AUDUSD slid below the 20-day EMA as sellers gathered momentum.

That said, the AUDUSD is extending its losses and is eyeing the October 21 swing low at 0.6209, which, once cleared, could pave the way toward the YTD low at 0.6169. Nevertheless, if the AUDUSD reclaims 0.6300, it could climb towards the November 3 high at 0.6371, posing a real threat of challenging the psychological 0.6400.

AUDUSD should be aware that the Relative Strength Index (RSI) is below the 50-midline with a bearish slope, suggesting the downtrend would likely continue in the near term.

AUDUSD Key Technical Levels

 

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