Current price action is calling for further depreciation of the Australian dollar, as bearish momentum is picking up. This week we have the Australian employment data which will be a big mover for the Aussie. The unemployment rate is forecast to remain steady on 5.7% while employment change is forecast to add a further 15K plus job positions. On the same day we have some important US data, core retail sales and PPI . Some good numbers here are needed to keep the bullish USD momentum alive , if not and data turns out red we could see USD drop again as rate hike expectations will decrease further.
The Aussie has continuously been breaking below rising trends lines on the 4H and current trend line has been compromised which indicates selling momentum is increasing. Pictured below.
It appears that price may be moving downward to the daily 200MA. There is a healthy support level .74200 which was a former resistance level back on the 9th of August 2015 and became support in April this year, and would make a likely place for current price to fall.
A volatile weak still lays ahead.