Overview:
Trend: Bearish market.
The AUD/USD pair posted losses since weeks and registered its lowest close since January 2009 at the price of 0.5510.
The Aussi struggled to find demand amid the deepening coronavirus outbreak crisis.
The lowest price set at the 0.5510 level, but the AUD/USD pair rebounded to reach 0.5900.
The AUD/USD pair dropped sharply from the level of 0.6137 towards 0.5510. Now, the price is set at 0.5912 to act as a daily pivot point.
It should be noted that volatility is very high for that the AUD/USD pair is still moving between 0.6007 and 0.5700 in coming hours.
Furthermore, the price has been set below the strong resistance at the levels of 0.6007 and 0.6137, which coincides with the 61.8% and 78% Fibonacci retracement level respectively.
Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the AUD/USD pair is continuing in a bearish trend from the new resistance of 0.5912.
Thereupon, the price spot of 0.5912 remains a significant resistance zone. Therefore, a possibility that the AUD/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective.
In order to indicate a bearish opportunity below 0.5912, sell below 1.59125 with the first targets at 0.5817 and 0.5700 (the double bottom is seen at 0.5510). However, the stop loss should be located above the level of 0.6137.
