The AUD/USD pair is mildly bid in Asia, possibly due to moderate gains in the S&P 500 futures. The technicals on the 4-hour chart, however, indicate that sellers are controlling the market and a drop to 0.71 could be in the offing.
The bear flag breakdown on Friday opened up downside toward the psychological level of 0.70. The bearish setup is backed by downward sloping key moving averages – 50- and 100-candle MAs have produced a bearish crossover last week. What's more, the relative strength index (RSI) is also biased bearish below 50.00.
The sell-off to levels below 0.71 could happen this week if the Fed retains hawkish bias, squashing expectations of 2019 rate hike pause.
Technically speaking, the bearish setup would be invalidated above the Dec. 13 high of 0.7247 (recent lower high).
Today Last Price: 0.7178
Today Daily change: -1.0 pips
Today Daily change %: -0.0139%
Today Daily Open: 0.7179
Previous Daily SMA20: 0.7253
Previous Daily SMA50: 0.7192
Previous Daily SMA100: 0.7227
Previous Daily SMA200: 0.7395
Previous Daily High: 0.7231
Previous Daily Low: 0.7151
Previous Weekly High: 0.7247
Previous Weekly Low: 0.7151
Previous Monthly High: 0.7345
Previous Monthly Low: 0.7072
Previous Daily Fibonacci 38.2%: 0.7182
Previous Daily Fibonacci 61.8%: 0.7201
Previous Daily Pivot Point S1: 0.7143
Previous Daily Pivot Point S2: 0.7107
Previous Daily Pivot Point S3: 0.7063
Previous Daily Pivot Point R1: 0.7223
Previous Daily Pivot Point R2: 0.7267
Previous Daily Pivot Point R3: 0.7303