FX.co ★ AUD/USD extends its downtrend

AUD/USD Ignored 0.6889 Downside Obstacle

The AUD/USD pair resumed its downside movement. At the time of writing, it was trading at the 0.6873 level. As long as the price stays under the downtrend line, it could approach and reach new lows. The downtrend line represents an upside obstacle.

Technically, the 0.6889 level represented a downside obstacle. Dropping below this level signaled strong sellers and a downside continuation. Only jumping and stabilizing above the downtrend line may announce that the downside movement could be over.

AUD/USD Trading Conclusion

Breaking below the 0.6889 downside obstacle was seen as a selling trading opportunity. Staying below this level and under the downtrend line, AUD/USD could drop deeper.