AUD/USD Price Analysis: Any recovery remains elusive below 0.6705
- AUD/USD pares the biggest daily loss in a week amid sluggish markets, retreats from daily high of late.
- Bearish MACD signals, steady RSI suggests a continuation of downtrend.
- Six-week-old descending resistance line, 100-SMA restrict immediate upside.
- Aussie bulls remain confused below 200-SMA; one-week-long horizontal support puts a floor under the prices.
AUD/USD struggles to keep the daily gains around 0.6620 as it consolidates the biggest slump in a week during Thursday’s sluggish morning in Europe, after a volatile Wednesday that rocked markets with a risk-off mood.
In doing so, the Aussie pair justifies the bearish MACD signals and RSI (14) line, as well as the repeated failures to cross a 1.5-month-long resistance line and the 100-SMA, to tease the intraday sellers.
However, an area comprising multiple lows marked since March 07, between 0.6565 and 0.6575, appears a tough nut to crack for the AUD/USD bears.
Also acting as the downside filters are the tops marked during October 2022 around 0.6545 and 0.6520.
On the contrary, the aforementioned resistance and the 100-SMA, respectively near 0.6690 and 0.6705, restrict short-term AUD/USD advances amid downbeat oscillators.
Even if the AUD/USD bulls manage to cross the 0.6705 hurdle, the monthly high near 0.6785 and the 0.6800 round figure will precede the 200-SMA resistance of around 0.6830 to challenge the risk-barometer pair’s further upside.
To sum up, AUD/UDS is likely to remain bearish but the road towards the south appears bumpy.
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.
