AUD/USD Price Analysis: Bears march towards weekly support near 0.6875
|- AUD/USD remains depressed around intraday low, extending the previous week’s pullback towards monthly low.
- One-week-old trend line may offer intermediate support but the 0.6855 level is crucial for bears to watch.
- Convergence of 50-SMA, two-week-old resistance line challenge buyers.
AUD/USD holds lower ground near 0.6890 heading into Thursday’s European session. In doing so, the Aussie pair stretches the previous day’s losses towards the one-week-old support line amid bearish MACD signals.
It’s worth noting, however, that an upward sloping trend line from May 12, near 0.6855, appears a tough nut to crack for the AUD/USD sellers.
Should the quote drop below 0.6855, the yearly low marked in May, around 0.6830, will quickly return to the charts.
Following that, the 61.8% Fibonacci Expansion (FE) level of June 03-16 moves, near the 0.6800 round figure, will challenge the AUD/USD bears.
Meanwhile, the 50-SMA and a fortnight-long resistance line together restrict the Aussie pair’s short-term recovery around 0.6950-55.
In a case where AUD/USD rises past 0.6955, the odds of witnessing an upswing towards the mid-month peak surrounding 0.7070 can’t be ruled out. During the run-up, the 0.7000 threshold may offer an intermediate halt to the bulls.
Overall, AUD/USD bears attack short-term key supports but a lack of downside room might challenge the pair’s further declines.
AUD/USD: Four-hour chart
Trend: Further downside expected
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