#AUDUSD @ 0.65861 continues losing ground for the third straight day and drops to over a two-year low. (Pivot Orderbook analysis)

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• AUD/USD continues losing ground for the third straight day and drops to over a two-year low.
• The post-FOMC USD rally remains uninterrupted and continues to exert downward pressure.
• The risk-off impulse further contributes to driving flows away from the risk-sensitive aussie.

The pair currently trades last at 0.65861.

The previous day high was 0.6706 while the previous day low was 0.6622. The daily 38.2% Fib levels comes at 0.6654, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6673, expected to provide resistance.

The AUD/USD pair remains under heavy selling pressure for the third straight day on Thursday and drops to the 0.6580 region – the lowest since May 2020 during the early European session.

The US dollar builds on the previous day’s post-FOMC breakout momentum and hits a fresh 20-year high, which, in turn, is seen as a key factor dragging the AUD/USD pair lower. It is worth recalling that the Fed raised interest rates by another 75 bps on Wednesday and signalled that it will likely undertake more aggressive rate increases to cap inflation. This, along with the prevalent risk-off environment, provides an additional lift to the safe-haven greenback.

The market sentiment remains fragile amid growing worries about a deeper economic downturn and the risk of a further escalation in the Russia-Ukraine conflict. In the latest development, Russian President Vladimir Putin announced an immediate partial military mobilization and threatened to use all the means to defend Russia and its people. This, in turn, takes its toll on the global risk sentiment and contributes to driving flows away from the risk-sensitive aussie.

With the latest leg down, the AUD/USD pair confirms this week’s bearish breakdown through the 0.6700 mark. A subsequent slide below descending trend-line support extending from December 2020 might have already set the stage for additional weakness. Given that technical indicators on the daily chart are still far from being in the oversold territory, spot prices seem vulnerable to extending the descending trend and aim toward testing the 0.6500 psychological mark.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6585 at the time of writing. Pair opened at 0.6629 and is trading with a change of -0.66 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6792, 50 SMA 0.6884, 100 SMA @ 0.6938 and 200 SMA @ 0.71.

The previous day high was 0.6706 while the previous day low was 0.6622. The daily 38.2% Fib levels comes at 0.6654, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6673, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6599, 0.6568, 0.6515
• Pivot resistance is noted at 0.6683, 0.6736, 0.6767

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