FX.co ★ AUD/USD: support levels violated

The AUD/USD pair crashed as the Dollar Index extended its growth. It's located at 0.6406 at the time of writing far below yesterday's high of 0.6488. The downside pressure is high, so more declines could be natural. Still, after the last sell-off, the rate could come back to test and retest the immediate resistance levels before going down.

The greenback dominated the currency market after the US Unemployment Claims and Core Durable Goods Orders came in better than expected yesterday. Today, the AUD/USD pair should print sharp movements after Jerome Powell and Lagarde's speeches at the Jackson Hole Symposium.

AUD/USD Strongly Bearish!

Technically, the rate rebounded within an up channel. This represents a flag formation that indicates a downside continuation. The price dropped below the uptrend line and below the 0.6408 former low.

These represented critical downside obstacles. Now, it has retested the broken uptrend line and it tries to make a new lower low.

AUD/USD Outlook!

A bearish closure below today's low of 0.6402 activates a downside continuation and is seen as a bearish signal. The median line (ml) stands as a potential downside target.