AUD/USD: bulls remain crippled down to fresh lows at 0.7429

AUD/USD is in a bearish trend, falling from the 0.76 handle last week in a grind to 0.7429 new lows printed in early Asia since 8th July.

AUD/USD broke down below the 200 sma on the 1hr sticks at the start of this week and has not really looked back since except with a slight recovery from 0.7470/80 in a dead cat bounce. 

The foundations for a lower Aussie are in place as markets pile into the dollar, with DXY making fresh highs, as market risk sentiment continues to remain towards risk adverse positioning in the main given the heightened concerns for global growth that is struggling in a increasingly deflationary outlook. The RBA could well be shifting back to an easing bias again, and the RBNZ announcements were weighing on the antipodeans today as well.  

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that the technical readings in the 4 hours chart point to a downward extension, as the price is currently below its 200 EMA for the first time in this July, while the 20 SMA has turned sharply lower far above the current level.  "Indicators in the mentioned time frame have resumed their declines within negative territory after correcting oversold readings, also indicating that the risk is towards the downside. If the mentioned Fibonacci support gives up, the pair has room to extend its decline down to 0.7330, the 50% retracement of the same yearly rally."