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AUD/USD Breaks a Key Support Cluster Around 0.92

AUD/USD has been bullish since late January, rallying from 0.8660 to 0.9505 by June. However, price action from April until now has been more or less sideways. 0.92 appeared to be a key support for this consolidation. A break below 0.92 would essentially form a price top, and that is exactly what is happening as we get into the 9/10 trading session.

(AUD/USD Daily Chart 9/9)

There was also a couple of support factors in the 0.9180-0.9190 area, which contained the 200-day SMA, and the 38.2% retracement level. Now that this area is broken, the next target in the short-term will be the 0.9080-0.9085 area which contains both the 50% retracement and a previous resistance. in January and February.

Turning our attention to the weekly chart adds to the bearish outlook. Price has been bearish at least since 2013, when AUD/USD fell from about 1.0580 to 0.8847. The market has been choppy since, but the weekly RSI shows maintenance of the bearish momentum as the reading held below 60. Also this week's decline is breaking the 50-week SMA, which revives a bearish bias. 

With the wind of a bearish trend on its back AUD/USD might have downside toward the 0.8850 level, and the 0.8660 low on the year.

(AUD/USD Weekly Chart 9/9)

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