The Australian dollar against the US dollar experienced a big dump of 1.01%, follow the support level of 0.63572.

The escalation of the Iran-Israel conflict — and the U.S. being drawn into it over the weekend — has sparked typical risk aversion. U.S. Treasuries are sought after, with high-beta forex bearing the brunt. AUDUSD (Australian Dollar/US Dollar) opened with a falling gap and slumped, continuing the technical devastation at the end of last Friday. The Australian dollar against the US dollar is one of the most volatile currency pairs against the US dollar. The price fell -1.01% on the day. Late last week, the pair broke below the 200-day moving average (0.64616) on the 200-day chart and the ascending trend line drawn from the May lows. Monday’s gap accelerated the downward momentum, sending the spot price below its recent choppy bottom at 0.6407; This level now signals short-term risk. With sellers dominating, price is approaching the oscillating bottom of May at 0.63572. A decisive break above this level would expose the 38.2 % retracement of the April-June rally, which is 0.63084. Failure to find support here will trigger a deeper pullback towards the 0.6233/50% midpoint area. After a breakout, the path of least resistance remains to the downside. Traders will be eyeing the 0.64072 level, a shorter-term upside target that needs to break out and hold for more help to buyers.

Key Level Resistance Level 1: 0.6407 (previous oscillation bottom/gap top) Resistance Level 2: 0.64616 (4-hour 200-day MA) Support Level 1: 0.63572 (May’s fluctuation low point) Support Level 2: 0.63084 (38.2% of the rise from April to June) Support Level 3: 0.6233 (50% pullback level and previous congestion area)