AUD/USD Price Analysis: Aussie trades below 100-day SMA for first since May

• AUD/USD has breached key support for the first time in five months. 
• The daily chart indicators indicate scope for continued sell-off. 

AUD/USD is trading below its 100-day simple moving average (SMA) for the first time since May 18. 

At press time, the pair is trading at 0.7080, representing a 0.16% decline on the day. Meanwhile, the 100-day SMA is located at 0.7096. 

A close below that SMA support would validate the bearish view put forward the daily chart indicators and could yield deeper declines.

The MACD histogram has crossed into a bearish territory below zero. The below-50 reading on the 14-day relative strength index indicates the path of least resistance is to the downside. 

Further, the trendline connecting Sept. 1 and Sept. 16 highs is intact. Meanwhile, the downside break of the ascending trendline rising from Sept. 25 and Oct. 7 lows is still valid. 

Support is located at 0.7006 (Sept. 25 low), while resistance is seen at0.7243 (Oct. 9 high). 

Daily chart

Trend: Bearish

Technical levels