The US dollar is continuing its rampaging amid worsening market sentiment. The dollar index jumped above the 104 mark, hitting a fresh 20-year high, as hawkish FED, surging inflation, the war in Ukraine and Chinese lockdowns led investors to dump risky investments and transfer their fund to safe-haven assets. The Australian dollar also fell sharply despite last week’s larger-than-expected interest rate from the Reserve Bank of Australia. AUDUSD pair broke below major support at 0.7060 which is marked with lower limit of the 1:1 structure and 38.2% Fibonacci retracement of the upward wave launched in March 2020. Pair is currently testing psychological level at 0.7000, however should break lower occur, next target for sellers can be found around 0.6965 where January 2022 lows are located.
AUDUSD, D1 interval. Source: xStation5