AUD/USD: 0.8070 is critical support - FXStreet

FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet, explained that the Australian dollar finally capitulated against the greenback.

Key Quotes:

"...with the pair losing over 100 pips in a couple of hours, edging below 0.8100 by the end of the day."

"The slump in the AUD/USD pair came along with gold sharp reversal following speculation the ECB will announce a 1,1T Euros stimulus."

"The 1 hour chart shows indicators losing the bearish momentum but steady in oversold territory, as the price consolidates near its low of 0.8077, not suggesting yet an upward correction."

"In the 4 hours chart technical readings present a strong bearish momentum supporting further declines particularly if 0.8070 static support gives up, exposing the pair to a test of 0.7960 a major long term static Fibonacci support."

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