AUD/USD sinks to fresh lows since December last year

Technical Analysis

AUD/USD falls to 0.7536, its lowest level since 23 December last year

The pair is starting to validate the head-and-shoulders pattern as it breaks through the neckline and 2 February low @ 0.7564, allowing for the downside momentum to accelerate towards fresh lows seen in December last year.

With the break below the 100-day moving average (red line) as well, sellers are starting to form a stronger grip on the pair with further support only seen closer towards the 50.0 retracement level near 0.7500 and then the 21 December low @ 0.7462.

There isn’t much clear catalyst for the shove lower but it also comes as NZD/USD is dragged down back under 0.7000 following the recent technical break last week.

That said, the aussie is the leading laggard this time around and the technical setup above doesn’t bode too well for the currency with the dollar keeping firmer as well.

There might also be some positions taken off the table ahead of the long weekend (Easter break) and with momentum selling, that may have been enough to tip AUD/USD lower and allowing sellers to break the key technical levels pointed out above.

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