The Australian dollar fell towards its lowest level in 11 years during the past hour, to settle below 0.6600 levels. This is due to a renewed risk aversion in the market, amid continuing concerns about the spread of the Coronavirus.
Concerns have started to increase regarding the continued negative economic impact of the Corona virus, especially after statements by the World Health Organization which warned that the virus might spread globally, which raised concerns about the prospects for Chinese economic growth and thus negatively affected the Australian dollar. Later in the day, markets were awaiting the initial reading of the manufacturing and services PMI for the United States, as well as data for the existing home sales index. We are also awaiting a series of speeches by some members of the Federal Reserve.
Technical Analysis
The Australian dollar against the dollar continued the downward series, breaking the 120th level represented by the level 0.6680, achieving our target at 0.6596.
Momentum and RSI indicators support further decline provided the Australian succeeds in breaking 0.6590 levels to target support 0.6560 and 0.6510 at the mid-session of the 0.7031 Summit recorded on December 31, 2019.We may see corrections over the lower timeframe but are expected to be limited to 0.6650 latitude.
The expected trading range for today is between 0.6560 support and 0.6640 resistance
Expected trend for today: Downside
