AUD/USD: New Virus Spread and Soured Risk Sentiment Keep Aussie Dollar Under Increased Pressure

Technical analysis of Forex market

The Australian dollar remains in red and hit new lowest in over one week on Thursday, following Wednesday’s 0.74% drop.

Spread of new coronavirus Delta variant triggered fresh restrictions across Australia that further soured risk sentiment, adding to negative tone.

Rising bearish momentum on daily chart, formation of double death-cross (5/200 and 10/200DMA’s) and Wednesday’s large bearish daily candle weigh on near-term action, which pressures key supports at 0.7476 (June 18 low) and 0.7445 (top of rising weekly Ichimoku cloud.

Broken 200DMA (0.7560) is expected to cap extended upticks and keep bears in play.

Res: 0.7527; 0.7543; 0.7560; 0.7570
Sup: 0.7493; 0.7476; 0.7445; 0.7400