AUD/USD Price Analysis: 200-EMA probes bears on their way to 0.6550
- AUD/USD stays sluggish after falling the most since March 2020.
- Clear downside break of three-week-old support line, bearish MACD signals favor sellers.
- Horizontal area comprising multiple levels marked since October lure bears.
AUD/USD struggles to defend the 0.6700 threshold as traders lick their wounds early Friday, after witnessing the biggest daily fall in 33 months.
Even so, the Aussie pair remains on the seller’s radar as it keeps the recent downside break of the three-week-old support line, now resistance around 0.6720. Also favoring the AUD/USD sellers are the bearish MACD signals.
However, the 200-Exponential Moving Average (EMA) level surrounding 0.6685 restricts the immediate downside of the Aussie pair.
Following that, the November 21 swing low near 0.6580 may act as an extra downside filter before directing the AUD/USD bears toward the 10-week-old horizontal support area near 0.6550.
Alternatively, recovery moves need to stay beyond the 0.6720 support-turned-resistance line to recall the AUD/USD bulls.
Even so, Monday’s bottom surrounding 0.6730 and the early December high near 0.6815 could challenge the upside momentum.
In a case where AUD/USD stays firmer past 0.6815, the odds of witnessing a run-up toward the monthly high near 0.6895 can’t be ruled out.
Overall, AUD/USD bears are taking a breather after portraying a major downside move. However, the sellers are likely to keep the reins unless staying beyond 0.6720.
AUD/USD: Four-hour chart
Trend: Further downside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
