September 23, 2022 12:13 AM ET
By: AnalysisWatch
The AUD/USD currency pair fell sharply after hitting the barricades around 0.6670 in Asian trading. The asset is expected to retest its two-year low, recorded at 0.6574 on Thursday. The major has touched its intraday low at 0.6616 and is expected to show further weakness.
On the hourly scale, the Aussie bulls have seen a steep decline after conducting a textbook test and falling into a widening triangle chart pattern. The uptrend line of the widening triangle runs from the Sept. 16 high at 0.6724, while the horizontal support that is now becoming resistance runs from the Sept. 16 low at 0.6670.
The level has fallen below the 20-period Exponential Moving Average (EMA) at 0.6635, further weakening the Aussie bulls.
The Relative Strength Index (RSI) (14) is also on the verge of falling into the bearish 20.00-40.00 range, which would trigger downside momentum.
A drop below the two-year low at 0.6580 will drag the level towards the May 26, 2020 low at 0.6538, followed by the psychological support at 0.6500.
On the other hand, a break above Thursday's high at 0.6670 will drive the value towards the September 18 high at 0.6734 and the September 15 high at 0.6770.