The graph today depicted the very bad image of the AUDUSD, The Australian dollar consistently fell day by day and today’s it marked at the price of 0.5920, If we look back to the history of the AUDUSD, then this figure surprised us that, the AUDUSD had never reached at this stage from the past five year.
This price reflected the very poor phase of the Australian currency, On February 01, 2020, the price was enjoying its optimal position with the price of more 0.7000, its the world recession stage, the financial disasters came all over the world that restricted the trading in almost all the stock market and AUDUSD is also one of them.
If we specifically discuss the fallen price of today against the US Dollar, then the positive significant growth of the US Industrial Production is might be considered responsible for this. The Industrial Production released by the Board of Governors of the Federal Reserve dramatically moved from a negative reading of 0.5% to 0.6%, and this figure is over from the estimates of the economist which was 0.4%.
The Industrial Production shows the volume of production of US industries such as factories and manufacturing. This will produce an optimistic (or bullish) sentiment for the USD if strong industrial output growth comes out, which indirectly unfavorable for the Australian currency and hence become the cause of its weakening.
Unluckily, at the downside, no help has been received in the form of support level which illuminates the expectation of an increase in price.
On the upper side, that the price may be forced by the number of levels of resistance that add another hurdle in the already burdened AUDUSD journey as it may not allow it to continue its improvement. The first resistance is 0.6223, the combination of Fibonacci level and trendline, and shortly thereafter a further resistance of 0.6385 at 38.2% Fib level, and then the highest horizontal resistance is at 0.6517.
Although the AUDUSD conditions are not strong, and at this stage, it entails the volatility, as we have seen its bearish run right now, a powerful support force will be required to lift itself to the beneficial level.