AUD/USD Price Analysis: Bears brace for 0.7200 at three-week low

AUD/USD holds lower ground near monthly low, prints three-day downtrend.
Sustained trading below 200-DMA, descending RSI, not oversold, back the bears.
78.6% Fibonacci retracement can trigger corrective pullback, two-month-old hurdle guards recovery moves.

Anil Panchal FXStreet

AUD/USD remains pressured around the monthly low of 0.7226, down 0.68% intraday ahead of Monday’s European session.

In doing so, the Aussie pair extends Friday’s downside break of one-month-old horizontal support, now resistance, amid a bearish RSI line.

Given the absence of oversold RSI, AUD/USD prices can continue extending the south-run towards the 0.7200 threshold, comprising 78.6% Fibonacci retracement level of November 2020 to February 2021 upside.

It should be noted, however, that any further downside past 0.7200 may be challenged by the RSI conditions, likely to turn oversold around then, if not then the yearly low near 0.7105 and a descending support line from April close to 0.7015 will be in focus.

Meanwhile, the corrective pullback will be ignored unless crossing a horizontal area comprising July’s low, surrounding 0.7290.

Even so, 50-DMA and 61.8% Fibonacci retracement levels, respectively around 0.7340 and 0.7340, challenge the AUD/USD bulls.

AUD/USD: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	0.7231
Today Daily Change	-0.0053
Today Daily Change %	-0.73%
Today daily open	0.7284

Trends
Daily SMA20	0.7332
Daily SMA50	0.7346
Daily SMA100	0.7507
Daily SMA200	0.7605

Levels
Previous Daily High	0.7323
Previous Daily Low	0.7262
Previous Weekly High	0.7377
Previous Weekly Low	0.7262
Previous Monthly High	0.7427
Previous Monthly Low	0.7106
Daily Fibonacci 38.2%	0.7285
Daily Fibonacci 61.8%	0.73
Daily Pivot Point S1	0.7256
Daily Pivot Point S2	0.7228
Daily Pivot Point S3	0.7194
Daily Pivot Point R1	0.7317
Daily Pivot Point R2	0.7351
Daily Pivot Point R3	0.7379

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.

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