AUD/USD Price Analysis: Remains vulnerable near multi-year lows
|- AUD/USD comes under some fresh selling pressure on Wednesday.
- The recent downfall has been along a descending trend-channel.
- Further weakness to the 0.6500 mark remains a distinct possibility.
The AUD/USD pair came under some renewed selling pressure and dropped to a fresh 11-year low level of 0.6565 on Wednesday, albeit lacked any strong follow-through weakness.
The fact that oscillators on the daily chart are pointing to oversold conditions, traders seemed reluctant to place fresh bearish bets amid a modest recovery in the risk sentiment.
Looking at the technical picture, the pair has been trending lower along a descending trend-channel since the beginning of 2020, indicating a well-established near-term bearish trend.
Moreover, the pair's inability to register any meaningful recovery suggests that the near-term bearish pressure might still be far from being over and warrant some caution for bulls.
Hence, some follow-through weakness, towards testing the lower end of the mentioned trend-channel, currently near the key 0.6500 psychological mark, remains a distinct possibility.
On the flip side, the 0.6600 round-figure mark now seems to attract some fresh selling and cap any attempted recovery near the overnight swing highs, around the 0.6620-25 region.
AUD/USD daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.