AUDUSD drops through 0.6865 support

AUDUSD: ⬇️ Sell

– AUDUSD broke support zone

– Likely to fall to support level 0.6675

AUDUSD currency pair recently broke the support zone between the support levels 0.6915 and 0.6865 (which reversed the price at the end of March, at the end of June and in the middle of October) and the support trendline of the daily down channel from September.

The breakout of this support zone accelerated the active impulse wave 3 of the intermediate impulse wave (C) from the start of September.

Given the strongly bullish US dollar sentiment, AUDUSD can be expected to fall further toward the support level 0.6750 and then to 0.6675 (former lows from January). The US dollar strengthened after higher-than-expected US inflation data for October raised the odds of a Fed rate hike in December to 87%, while the markets expect the RBA to keep its rates on hold.

If 0.6750 holds, AUDUSD can correct up toward 0.6865 (now resistance). A daily close above 0.6915 would cancel this bearish scenario.

Sellers stay in control while AUDUSD trades below 0.6865. A Fed rate hike on 9 December would widen the gap with the RBA’s steady rates and add pressure toward 0.6675, while softer US data that lowers the hike odds could trigger the pullback to 0.6865.