AUD/USD technical analysis: More weakness expected below 0.6625
AUD/USD technical analysis indicates that the pair could continue its recent fall, with sellers targeting losses below the 0.6500 handle. Bearish pattern breakouts are currently in play across various time frames.
The Australian Dollar has been one the worst performing major currencies against the US Dollar over recent weeks, with the pair hitting levels not seen since March 2009.
AUD/USD analysis shows that the pair is vulnerable to more heavy losses while price trades below the 0.6625 level.
AUD/USD medium-term price trend
The Australian dollar has been tumbling against the US dollar over recent sessions, with the pair touching an eleven-year low, around the 0.6580 level.
Investors have been moving away from riskier asset classes, as fears over the coronavirus reach extreme levels amongst market participants.
AUD/USD technical analysis shows that the pair has broken below a falling wedge pattern, and could slump towards the 0.6400 level.
The daily time frame shows that the pair has limited technical support below the 0.6580 level, and could easily tumble towards fresh decade lows over the coming weeks.
The size of the wedge pattern daily time frame implies that AUD/USD pair could eventually fall towards the 0.6400 level.
It is also worth mentioning that a major triple-bottom could form if bulls hold price above the 0.6040 support level.
AUD/USD short-term price trend
AUD/USD technical analysis highlights that the pair has a negative bias over the short term while price trades below the 0.6760 level.
A bearish head and shoulders pattern has been triggered over the lower time frames, with the breakout zone found around the 0.6677 level.
Looking at the size of the pattern, the AUD/USD pair could target the 0.6450 level before staging any form of a recovery.
I previously mentioned that substantial amounts of positive MACD divergence have been built during the latest decline.
With the breakout now in full force it appears unlikely that the AUD/USD pair will recover above the 0.6700 level without a bullish fundamental driver.
AUD/USD technical summary
AUD/USD analysis shows that bearish pressure is building across both time frames and the pair could slump towards the 0.6450 to 0.6400 level before staging a meaningful recovery.