- AUD / USD extends the slide after opening below the 200-day SMA on Friday.
- The next target on the downside is at 0.7475, support of the downtrend line.
- The RSI pushes into the oversold territory, with additional room for additional losses.
After a brief bounce during the Asian session, the AUD / USD has resumed the slide towards 0.7510, reaching the lowest levels since December 2020.
The Australian dollar ignores Westpac’s expectations that the RBA will raise the Official Cash Rate (OCR) in early 2023, as the renewed rally in the US dollar weighs on the pair.
The surprise from the Fed continues to keep the strong tone around the USD intact as it puts unrelenting downward pressure on most major currencies, including the Australian dollar.
From a short-term technical perspective, the pain over AUD / USD is accelerating after sustained weakness below the 200-day moving average at 0.7554.
The next target on the downside is at the four-month-old downtrend line support at 0.7475.
The RSI is pointing lower in the oversold territory, which suggests there is room for further declines before seeing a bounce.
AUD / USD daily chart
Only a daily close above the 200 SMA could point to a temporary reversal, with the bulls likely facing stiff resistance at the horizontal hurdle (orange) at 0.7589.
Higher up, the AUD / USD will then seek to regain the 0.7600 level.
AUD / USD additional levels
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