AUD/USD Price Analysis: Bears cheer rising wedge confirmation around 0.6900

AUD/USD extends the previous day’s pullback from five-month high, renews weekly low.
Confirmation of bearish chart pattern, sustained break of 50-SMA favor sellers.
200-SMA, monthly support line probe bears even as oscillators suggest further downside.

Anil Panchal FXStreet

AUD/USD remains on the back foot for the second consecutive day after refreshing the multi-month high, down half a percent as bears poke the 0.6900 threshold during early Thursday.

In doing so, the Aussie pair justifies the previous confirmation of the two-week-old rising wedge bearish chart pattern, as well as the 50-SMA breakdown.

Also favoring the AUD/USD pair in refreshing the weekly low is the downbeat RSI (14) line, not oversold, as well as the bearish MACD signals.

That said, the rising wedge confirmation signals the theoretical target of around 0.6630 but the RSI line has limited room before it hits the oversold territory. As a result, the 200-SMA and an upward-sloping support line from December 20, 2022, respectively near 0.6800 and 0.6785, could challenge the AUD/USD sellers.

Meanwhile, recovery moves need to cross the 50-SMA hurdle of 0.6945 to restore bullish confidence.

Following that, the lower line of the stated wedge, close to 0.6980, precedes the 0.7000 psychological magnet to probe the upside momentum.

In a case where the AUD/USD price remains firmer past 0.7000, the monthly high of 0.7065 and the August 2022 peak surrounding 0.7135, will gain the market’s attention.

Overall, AUD/USD is likely to decline further but the downside room appears limited.

AUD/USD: Four-hour chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	0.6906
Today Daily Change	-0.0030
Today Daily Change %	-0.43%
Today daily open	0.6936

Trends
Daily SMA20	0.6835
Daily SMA50	0.6769
Daily SMA100	0.6638
Daily SMA200	0.6824

Levels
Previous Daily High	0.7064
Previous Daily Low	0.6936
Previous Weekly High	0.6994
Previous Weekly Low	0.686
Previous Monthly High	0.6893
Previous Monthly Low	0.6629
Daily Fibonacci 38.2%	0.6985
Daily Fibonacci 61.8%	0.7015
Daily Pivot Point S1	0.6893
Daily Pivot Point S2	0.685
Daily Pivot Point S3	0.6765
Daily Pivot Point R1	0.7022
Daily Pivot Point R2	0.7107
Daily Pivot Point R3	0.715

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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