AUD/USD under bearish pressure
It is a hard time for AUD/USD this year after it make new yearly low. The pair is in the risk of further bearish movement, related to the coronavirus situation in China. We think AUD/USD will continue under pressure for medium-long-term as the world economy also took a hit. Countries announced the possibility of a recession if there is no improvement in the coronavirus situation.
Traders should avoid taking long positions in AUD/USD for now.
AUD/USD bounces from 0.6750 support level in December. But the bullish movement immediately reversed and the pair closed lower in January. Currently, the pair has not moved much from the monthly opening level. If the pair could not reverse current bearish pressure then it is expected to continue down and target 0.6000.
AUD/USD is in a critical situation as the pair fell below 0.6750. The bull attempted to move above the broken support level but could not make a close above it. If there is no positive development soon then AUD/USD might start moving lower again.
AUD/USD tested 0.6750 level two times on the bullish correction phase. The pair could not break out above the resistance level and currently set to test this year low. If there is lower low printed then traders will expect further weakness in the pair.
The trend is bearish which suggests traders stick with short positions only. 0.6750 is the level to look for short positions. If the pair could not break below 0.6662 then traders must be prepared to exit the short positions.