AUD/USD Plunges as Key Trend Support Broken
The Australian dollar (AUD) is facing intense pressure after breaking key trend support in the AUD/USD pair. This decline marks the third consecutive weekly drop for the currency, with Fibonacci resistance and a Federal Reserve-driven break of the June uptrend contributing to its downfall. The 200-day moving average has also been breached, signaling a deeper correction may be on the horizon.
The recent decline in the AUD/USD pair can be attributed to the Fed's decision, which fueled a break of the uptrend established in June. The daily Relative Strength Index (RSI) momentum is at its lowest level since July, indicating oversold conditions. The Fibonacci confluence behind the reversal and the 200-day moving average are key areas of focus for traders.
Event risk is high, with the Australian employment report and trade talks on tariffs, rare earths, and AI set to influence market sentiment. These developments will likely impact the AUD/USD pair in the coming days.