The Australian Dollar has dropped to the lowest level since 2016 against the US dollar. However, will the AUDUSD pair continue moving lower? OctaFX analysts shared their projection in the following technical analysis.
4 October, OctaFX – The Australian dollar declined to the lowest level since 2016 against the USD. This decline was because of the strong greenback. Earlier today, Australia released trade data. The trade balance rose to A$1,604B, which was better than the expected $1430B.
Australian Dollar Falls to 0.7086
The AUDUSD pair declined to 0.7086, which is the lowest level since March 2016. At this level, the pair found some resistance as shown on the four-hour chart below. The Bears Power indicator shows that bears are still in control.
This is evidenced by double moving EMA and the Money Flow Index indicators shown below. Therefore, the pair will likely remain at these low levels. If it crosses past the 0.7085, it will likely continue to move lower.
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