AUD/USD plunges to 0.7600 handle, hits fresh weekly low

Strong bid tone surrounding the greenback is weighing heavily on the AUD/USD pair, which the pair extending its sharp slide and is now on the verge of breaking through 0.7600 handle. 

The major came under renewed selling pressure following a break below 0.7650-40 support area and tested a fresh weekly low, erasing all of its previous week's gains and confirm the onset of a near-term corrective move. 

How strong has the move been? 

The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bearish. At the time of writing, RSI is neutral at 22.08, down from 30.56 at the last hour close, while ADX is trending at 41.46, up from 37.68 previous.

Meanwhile, daily RSI is in neutral territory at 59.18. On the hourly AUD/USD chart, the 200 SMA is declining and currently at 0.7664, down from the previous hour close at 0.7681. On average, the exponential closing price for the past 20 days is 0.7624, with the trend indicating a continuation higher ahead.

How volatile has AUD/USD been? 

Hourly 2-Standard Deviation Volatility Bandwidth is currently 92 pips, and has been expanding, while the ATR (14) is currently 20 pips. Daily 2-Standard Deviation Volatility Bandwidth is at 317 pips and expanding. The average movement for the current hour has been for 20 pips per hour, over the last four weeks. Meanwhile, 12:00-13:00 GMT represents peak for volatility, with an average movement of 43 pips over the same period. 

Technical outlook

Omkar Godbole, Editor and Analyst at FXStreet, notes, "Aussie’s failure to cut through resistance zone of 0.77-0.7750 on Thursday despite the strong Australia labor data release and the sharp rebound on Wednesday from rising trend line support followed by a fall back to rising trend line support in the Asian session today suggests bulls have lost grip and the bird could end below trend line level on daily closing basis, in which case 100-DMA level at 0.7497 stands exposed."

"On the higher side, only day end close above 0.7760 (Aug 11 high) would signal bearish invalidation."