AUDUSD Descends Lower as Risk Aversion on Coronavirus Weigh on Price

AUDUSD Price Analysis – March 12

The AUDUSD pair continues to drive lower on Thursday, capitalizing on risk-off flows with the greenback. As of the time of writing, the pair had registered its lowest level at 0.6266 in 11 years, erasing around 3 percent daily. Increased concerns over the spread of coronavirus are triggering a prolonged global recession.

Key Levels
Resistance Levels: 0.7031, 0.6684, 6434
Support Levels: 0.6314, 6266, 0.6008

AUDUSD Long term Trend: Bearish

The fall of AUDUSD from 0.7031 (high) level is still in the process of a larger structure. This is part of a larger downtrend from 0.7085 (high). The deviation of 5 and 13 moving averages confirms its long-term bearish dynamics.

The next target, however, is the level of 0.6008 (low). The trend may remain bearish as long as the resistance level of 0.7031 remains unchanged, even in the case of a strong rebound.

AUDUSD Short term Trend: Bearish

A breakdown of the AUDUSD level of 0.6434 ultimately indicates a greater recovery of the downtrend. The shift during the day returns to its lower side. The current decline can reach an estimate of 0.7031-0.6434, amounting to 61.8 percent from 0.6684 to 0.6314, and then 100 percent to 0.6086 level.

On the other hand, a breakout of the resistance level of 0.6684 is necessary to confirm the short-term bottom, even in case of recovery, the trend may remain bearish.

Instrument: AUDUSD
Order: Sell
Entry price: 0.6314
Stop: 0.6434
Target: 0.6266

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