AUD/USD: Aussie Posts New Multi-Month Low on Dominating Risk-off Mode

Technical analysis of Forex market

Risk aversion on growing concerns about inflation and slowdown of global growth continues to drive the Aussie dollar lower, after recovery attempts on Wednesday were strongly rejected above 0.70 level, now reverted to strong resistance.

Fresh weakness hit the lowest since June 2020 on Thursday, pressuring the top of monthly Ichimoku cloud (0.6822) which could provide some headwinds to larger bears.

Oversold daily indicators and 14-d momentum turning north from deep negative territory, support the scenario of consolidation, however, overall picture remains firmly bearish and complemented with negative fundamentals that suggests limited corrective action.

Upticks should stay below barriers at 0.7000/34 (psychological / falling 10DMA) to keep bears intact for fresh push lower, with weekly close below 0.70 level to strengthen bearish stance.

Violation of monthly cloud top would open way towards next key support at 0.6758 (50% retracement of larger 0.5509/0.8007 ascend).

Res: 0.6952; 0.6986; 0.7000; 0.7034
Sup: 0.6842; 0.6822; 0.6758; 0.6647