AUD/USD Price Analysis: Aussie bears eye fresh yearly low, focus on 0.6545
- AUD/USD takes offers to refresh monthly low, extends previous day’s fall.
- Clear downside break of 2.5-month-old ascending trend line, bearish MACD signals favor sellers.
- Below 50.0 RSI levels, nearness to key supports suggest limited downside room for Aussie bears to cheer.
AUD/USD drops to a fresh low since late April as bears cheer technical breakdown, as well as trace New Zealand Dollar (NZD), amid early Wednesday morning in Europe. In doing so, the Aussie pair prints a two-day downbeat as it flashes 0.6585 level by the press time.
That said, a daily close below the 10-week-long rising support line and bearish MACD signals keep the Aussie pair sellers hopeful. However, lows marked in April and March, respectively around 0.6575 and 0.6565, can lure intraday bears.
It’s worth noting though that the October 2022 peak joins the 61.8% Fibonacci retracement level of the pair’s run-up from the last October to February to highlight the 0.6545 mark as short-term key support.
In a case where the Aussie pair breaks the same, the odds of witnessing a fall towards November’s low of near 0.6270 can’t be ruled out.
On the contrary, the support-turned-resistance line, around 0.6610 by the press time, limits the immediate upside of the Aussie pair.
Following that, a convergence of the 21-DMA and 50% Fibonacci retracement, close to 0.6670 at the latest, could challenge the AUD/USD bulls.
Above all, the 100-DMA and 38.2% Fibonacci retracement surrounding 0.6780 holds the key to the buyer’s dominance.
AUD/USD: Daily chart
Trend: Limited 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.
