- The Australian dollar plunged to an 11-year low, dragged lower by a slump in oil prices and coronavirus fears.
- Oil prices declined 30 percent after Saudi Arabia surprised markets with a pledge to slash prices and boost production following the collapse of an OPEC supply agreement.
- Moreover, the selling pressure around the major intensified as the number of people infected with the coronavirus topped 107,000 across the world.
- The Aussie was trading 1.4 percent down at 0.6550, having hit a low of 0.6314 earlier, it’s lowest since March 2009.
- Technical indicators are bearish: RSI weak at 38, Stochs are biased lower and MACD supports downside.
- 21-EMA is currently acting as major resistance, the pair struggles to break above.
- Next resistance is located at 0.6653, a break above could take it near 0.6694.
- On the downside, support is seen at 0.6519 (61.8% retracement of 0.6433 and 0.6657), a break below could drag it till 0.6481 (78.6% retracement).
Recommendation: Good to sell on rallies around 0.6592, with stop loss of 0.6639, and target price of 0.6519.
