AUD/USD Price Analysis: Bears again attack 0.6850 key support zone
- AUD/USD takes offers to extend Friday’s pullback from one-week high.
- Downbeat oscillators, U-turn from 100-DMA keep sellers hopeful.
- 78.6% Fibonacci retracement may test bears before highlighting the yearly low.
AUD/USD remains on the back foot at 0.6861, extending Friday’s south-run while attacking a 2.5-month-old horizontal support area amid Monday’s Asian session. In doing so, the Aussie pair marks another attempt to conquer the key support zone, after failing the last week.
It’s worth noting that the oscillators like RSI (14) and the MACD appear more bearish during this time and can help the quote to conquer the aforementioned key support zone around 0.6855-50.
Following that, the 78.6% Fibonacci retracement level of July-August upside, near 0.6780, may act as an intermediate halt during the expected south-run targeting the yearly low surrounding 0.6680 marked in July.
On the contrary, the 50% Fibonacci retracement level near 0.6910 guards the quote’s immediate recovery ahead of the 100-DMA resistance close to 0.7020.
Should the quote crosses the 0.7020 hurdle, the early August high near 0.7050 may test the AUD/USD bulls before highlighting the monthly peak of 0.7136.
Overall, AUD/USD bears keep the reins but the quote’s further downside hinges on its ability to conquer the 0.6850 support.
AUD/USD: Daily chart
Trend: Further weakness 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.
