AUDUSD broke key support around 0.7020 and dropped to a fresh three-year low of 0.70 in the first trading day of 2019, signaling that the bearish trend is not about to end any time soon.
Still, with the price flirting with the lower Bollinger band in the four-hour chart and the RSI trying to gain ground above its 30 oversold limit, some sort of recovery is likely to happen in the short term. However, if the MACD extends negative momentum below its red signal line, any gains could appear temporary.
In case the price indeed heads up and back above 0.7020, immediate resistance is expected to come between 0.7050 and the upper Bollinger line currently seen at 0.7070. Overcoming the latter and more importantly crawling above the 50-period (simple) moving average (MA) would boost market confidence and raise buying bids somewhere between 0.7120 and 0.7150.
Alternatively, if sellers manage to clear the 0.70 floor, turning the outlook even more bearish, support could come first around 0.6950 before attention shifts to the 0.69 psychological level. Even lower, all eyes will be on 0.6826, the lowest mark reached since March 2009.
