AUD/USD Price Analysis: Looks set to refresh yearly low, 0.6560 eyed
|- AUD/USD takes offers to refresh intraday low, bears attack two-year bottom marked last week.
- Clear downside break of two-month-old trend line keeps sellers hopeful.
- Four-month-old bearish channel’s bottom in focus, 10-DMA acts as additional upside barrier.
AUD/USD extends the previous day’s losses on the Fed day as it pokes the yearly low surrounding 0.6670 during early Wednesday morning in Europe.
In doing so, the AUD/USD pair not only stretches the previous day’s U-turn from the 10-DMA but also cheers a clear downside break of an upward sloping support line from mid-July, now resistance around 0.6710.
Adding to the strength of the bearish bias are the downbeat RSI and MACD, as well as a four-month-old descending trend channel formation.
That said, the quote is well on the way to testing the stated channel’s support line, around 0.6560. However, the 0.6600 round figure may offer an intermediate halt during the fall.
Also acting as a downside filter is the 61.8% Fibonacci Expansion (FE) of April-August moves, near 0.6535.
Meanwhile, recovery moves need not only cross the support-turned-resistance line around 0.6710 but also stay firmer past the 10-DMA, close to 0.6745 to convince buyers.
Overall, AUD/USD is on the bear’s radar ahead of the key Federal Open Market Committee (FOMC).
AUD/USD: Daily chart
Trend: Further weakness expected
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