AUD/USD is showing a local downward reversal amid another decrease in commodity prices and the risk of the global economy falling into a deep recession. The shift of market optimism from positive to negative has led to the rise in dollar demand, and that is the reason why the pair is bearish.
Technical picture:
The quote is on the bottom line of the Bollinger indicator, below the SMA 5 and SMA 14. The moving averages have crossed and are giving a signal to sell, similar to the relative strength index (RSI), which has crossed the 50% level. The stochastic indicator, meanwhile, is at the oversold zone.
Possible dynamics:
A decline and consolidation below 0.7150 may lead to a further fall to 0.7045.
