• AUD/USD is on the verge of a test of key weekly support.
• AUD/USD bulls could be about to make their moves.

The Australian dollar hit fresh multi-year lows at the start of the week as investors moved into the safe-haven greenback after Britain's historic tax cuts plan added to market volatility. This has sent the high beta currency to a low of 0.6437 vs. the greenback, the lowest since May 2020. The following illustrates the prospects of a test of 0.64 the figure or a prolonged correction from here prior to the next significant move to the downside.

AUD/USD weekly chart

There are significant prospects of a correction at this juncture, as per the structure highlighted on the chart above and below. 

AUD/USD daily chart

A Fibonacci scale drawn on the latest bearish leg on the daily chart shows prospects of a correction towards the 38.2% ratio ahead of a 50% mean reversion back to test the daily support.