The AUD/USD pair have moved to a four-week trading low as Asian markets retreat over concerns about the corona- virus outbreak in China.
AUD/USD analysis shows that bulls must defend the 0.6830 level to avoid the pair falling back towards their worst levels of 2019.
AUD/USD medium-term price trend
AUD/USD technical analysis shows that the pair have turned technically bearish this week, following the recent drop below 0.6900.
The daily time frame shows that sellers have tested major trendline support from a downward move that has been in play since late-2018.
As long as bulls can defend the 0.6830 level the AUD/USD pair have a reasonable chance of moving back towards their 200-day moving average, which is currently around 0.6886.
Dip-buyers may start to move into the AUD/USD pair at current levels, and attempt to regain the bullish momentum of late December 2019.
A sustained loss of the 0.6830 support level would be disastrous for the AUD/USD pair, and could cause medium-term traders to become heavily bearish again.
AUD/USD short-term price trend
AUD/USD technical analysis highlights that the pair have become bearish in the short term, and are currently trading below all key moving averages on the lower time frames.
The four-hour time frame shows a series of bearish head of shoulders patterns forming recently, further pressuring the pair in the near term.
The recent fall from just above the 0.6900 level has helped to form a small head and shoulders pattern, with a downside projection of around 80 points.
A larger head and shoulders pattern can also be seen across this time frame. This holds a 200- point downside projection .
Traders should note that the neckline of the smaller pattern is located around the 0.6955 level, while the neckline of the larger pattern is currently around 0.6835.
AUD/USD technical summary
AUD/USD analysis shows that bulls need quickly to rally the pair away from the 0.6830 level to avoid further decline. Multi-day price closes above the 0.6900 level are currently required.