Points to 0.7685 after triangle breakout

• AUD / USD risks further declines as risk aversion fuels demand for the USD.
• 1-hour chart confirms symmetric triangle breakout
• The bearish RSI suggests additional losses below the support of the 100 hourly SMA.

AUD / USD extends its bearish momentum towards 0.7700, after failing to find a support point above 0.7750 on several occasions.

Selling pressure behind the Aussie is driven primarily by the broad recovery of the US dollar from two-week lows, as risk-off sentiment in markets fuels safe-haven demand for the US dollar.

Amid the market’s pessimistic tone, S&P 500 futures are down nearly 0.5%, also hitting the higher-yielding Australian dollar.

From a short-term technical perspective, the path of least resistance for AUD / USD appears to the downside, especially after marking the breakout of a symmetrical triangle on the 1-hour chart.

Adding credibility to the further decline, the critical support of the 100 hourly moving average at 0.7726 has given way, opening the doors for a test of the round 0.7700 level.

Lower down, the pattern’s measured target at 0.7686 could come into play. The RSI is near the lows below the midline, currently at the 35 level, which leaves room for further declines.

On the other hand, the AUD bulls need to regain the support of the 100 SMA now turned into resistance to extend the recovery momentum towards the strong resistance at 0.7740. That level is the confluence of the 50 hourly SMA and the pattern’s support now turned into resistance.

The next hurdle for buyers is seen at the bearishly sloping 21-hour SMA, now at 0.7748.

AUD / USD 1 hour chart

AUD / USD technical levels