AUDUSD continued its decline and touched a low of 0.7567 on Thursday. The downside bias accelerated after breaking below the kijun-sen and tenkan-sen lines. The pair is heading towards the multi-year low of 0.7559 and a break below this would open the path towards the next Fibonacci level of 0.7088 – this is the 78.6% retracement of the upleg from 0.6008 to 1.1078. To the upside, resistance lies at the bottom of the Ichimoku cloud at 0.7705 and above this the March 24 high of 0.7937 –which is also the 61.8 Fibonacci level. A move above the cloud would weaken the bearish trend.
The overall outlook is bearish for AUDUSD as prices have been making lower highs and lower lows since the peak of 0.9400 in September 2014. RSI is below 50 in bearish territory and falling, indicating the downside momentum is still there. Meanwhile the market is below the Ichimoku cloud and this is also bearish.