AUDUSD Potential 200 Pip Move to the Downside

With Australia extending their lockdown over the weekend and with the Fed's most recent optimistic outlook on the U.S economy, a potential 200 pip drop down to 0.7380 seems like a possibility. Previewing the pair on the daily time-frame, you can see the pair managed to retrace to the 38.2% retracement level of the most recent bearish impulse. This level was also met with a strong resistance zone.

Currently the pair is making lower lows on the daily perspective but for this pair to give conviction of further downside, we will need a break and hold below the 200 SMA. If we manage to break below the 200 SMA, look out for 0.7480 and then 0.7380.