AUD/USD Price Analysis: Bulls trying hard to defend 0.7000 confluence support
|- AUD/USD drifts into the negative territory for the sixth consecutive session on Friday.
- The set-up supports prospects for an eventual break below the 0.7000 confluence zone.
- Oversold RSI (14) warrants some caution for before placing aggressive bearish bets.
The AUD/USD pair failed to capitalize on its early uptick, instead met with some fresh supply near the 50% Fibonacci level of the 0.6776-0.7414 positive move. The pair turned lower for the sixth consecutive session on Friday and dropped to over one-month lows during the early North American session.
Bears might now be eyeing a sustained break below the 0.7000 psychological mark. The mentioned level marks an important confluence support comprising of 100-day SMA and the 61.8% Fibonacci level of the 0.6776-0.7414 positive move. A convincing breakthrough will be seen as a fresh trigger for bearish traders.
Meanwhile, RSI (14) on the daily chart has already slipped below the 30 mark, flashing oversold conditions. This, in turn, warrants some caution for aggressive traders and makes it prudent to wait for some near-term consolidation or a modest rebound before placing positioning for any further depreciating move.
On the flip side, attempted recovery might continue to face stiff resistance near the 0.7080 region. Any further move up might still be seen as a selling opportunity and remained capped near the 0.7100 round-figure mark.
AUD/USD daily chart
Technical levels to watch
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