The AUDUSD pair continued its decline last week as the markets sold the Australian currency on the latest signs of global panic on concerns about European problems, and China’s economic slowdown. The pair looks like it is about to run into a significant support level, and as a result, the markets are willing to forego any shorts at this point. The lows have been lower over time and the economic situation around the world is shaky, particularly in the European region which in turn hurts the appeal of risky assets like the Australian dollar.

The AUDUSD’s four-hour price chart shows that the currency pair is trading below its medium-term trend and the movement is shredding sways to the downside. The nearing slit below the nearest support line located at the 0.9599 price mark will likely support the continuation of the bearish progress. With that, favor to the bears is provided and a potential reversal to the upside seems vague at this time. At the moment, the medium-term Parabolic SAR(0.02,0.20) is signaling a downtrend as it produces dots following an downward parabolic path above the price activity while keeping its aloofness from it.

Also, the exponential moving average lines are in accordance with the Parabolic SAR(0.02,0.20) since the lines are pushing the pair just above the price action with strong angle of separation from one another. Considering these implications, particularly with the loud signals of the indicators showing that price action is bent to the downside, it signifies that a short position is viable in trading the Aussie-Greenback pair during the week.