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AUD/USD Has the 2014-Low of 0.8660 in Sight

In September alone, AUD/USD has made a sharp reversal after several months of consolidation above 0.92. After a failed bullish continuation attempt, price fell from 0.94 and just broke below the 0.89 handle as well as the 0.8890 support pivot and March low. This opens up the 2014-low of 0.8660 as seen in the daily chart.

(AUD/USD Daily Chart 9/22)

The 4H Chart shows the persistent bearish development based on the lower highs and lower lows, them moving averages and the RSI reading. Price just made a support/resistance pivot around 0.90, making that a key level. If we get some consolidation now, 0.90 might be resistance. A break above 0.90 might neutralize the current decline for a medium-term consolidation.

(AUD/USD 4H Chart 9/22)

When we look at the weekly chart, we can see that the prevailing trend is bearish, and so the 0.8660 level is in sight. It is also in-line with the trend to anticipate the dip to go beyond 0.8660.