The consecutive events regarding the economic growth of US together with the fiscal policy issued by Trump and hawkish outlook of the Fed for 2017 set the minds of the investors to avert from higher-yielding currencies including the Aussie dollar.
The market carried a bearish sentiment on Thursday. The AUD/USD pair further decline after the 2-day narrow consolidation. The sellers pushed the AUD towards 0.7200 from the previous 0.7250 region in the EU hours. Moreover, sellers failed to surpass the 0.7200 mark which caused them to take a pause. After the price touched the aforesaid levels, it made a roll back.
As shown in the 1-hour chart, the Australian dollar bounce back through the 50-EMA and resumed a downward trend. The moving averages maintained a bearish pattern as indicated in the same timeframe. Resistance is at 0.7250, the support holds the 0.7200 handle.
MACD grew less which means further strengthening for the sellers. RSI still was seen in the oversold territory and supported another downtrend.
Technical indicators exhibit a bearish tone. It is highly expected for a downward movement within the 0.7100 and 0.7150 levels.