AUD/USD Price Analysis: Drops back to seven-week-old support below 0.7200
|- AUD/USD extends pullback from 100-DMA to retest the key support line.
- Sluggish MACD, steady RSI add to the bearish bias.
- Bulls have a bumpy road until staying below 200-DMA.
AUD/USD takes offers around 0.7190, down 0.50% intraday during early Friday.
That said, the Aussie pair took a U-turn from the 100-DMA the previous day while the latest declines attack an upward sloping support line from December 03, near 0.7185 at the latest.
Given the sluggish MACD signals and steady RSI, not to forget failures to cross the key moving average, AUD/USD prices are likely to break the 0.7185 support line.
As a result, the pair is en route 0.7130 and 0.7080 short-term support levels before directing the AUD/USD sellers towards the year 2021 bottom surrounding 0.6990.
On the contrary, 100-DMA level surrounding 0.7280 and the previous support line from August near 0.7350 challenges AUD/USD buyers.
Even if the quote rises past 0.7350, a descending trend line from May 2021 and the 200-DMA, respectively near 0.7400 and 0.7415 will challenge AUD/USD bulls.
To sum up, AUD/USD is ready for further declines while there’s a long and bumpy road for the bulls before retaking control.
AUD/USD: Daily chart
Trend: Further weakness expected
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