AUDUSD: Aussie Drops to Three-Week Lows

Despite rising commodities, the Australian Dollar continued to trade under pressure and dropped 0.40% during the London session on Wednesday, hovering at around 0.7160, which counts three-week lows for this currency pair.

The Aussie is still trading within a bearish channel and remains limited by the extremely strong descending trend line, which is currently at 0.7250. This trend line was tested last week, and the pair failed again. The price also created a bearish pin bar on the daily chart. This has also sped up the decline over the last couple of days.

Bears may target 0.7145 now - where previous lows are found - and this is the last strong support before the 0.71 level, where the lower trend line of the current bearish channel is located.

As long as the pair remains below the mentioned trend line, the outlook seems bearish. The pair is now breaking to new lows, which confirms the bearish bias.

Disclaimer:

Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.