AUD/USD Price Analysis: Bears have an upper hand despite latest rebound to 0.6760
- AUD/USD recovers from intraday low but stays indecisive on a daily basis.
- Bearish RSI divergence, rising wedge keeps sellers hopeful even as 100-DMA adds to the downside filters.
- Recovery remains elusive below 0.6880, weekly high guards immediate upside.
AUD/USD picks up bids to pare the previous day’s losses around 0.6755-60 heading into Tuesday’s European session. In doing so, the Aussie pair bounces off intraday low but stays inside a one-month-old rising wedge bearish chart pattern.
In addition to the rising wedge, the bearish RSI divergence also teases the AUD/USD bears despite the pair’s latest recovery. On the same line could be the consecutive bearish MACD signals published in the last week.
When a higher high on prices fails to gain support from the higher tops of the RSI, it is called the bearish RSI divergence and suggests the quote’s downside.
That said, the 0.6800 round figure and the weekly high near 0.6815 challenge the near-term AUD/USD upside ahead of the stated wedge’s upper line, close to 0.6680 by the press time.
In a case where the Aussie bulls manage to keep the reins past 0.6880, September’s high near 0.6915 will be in focus.
Alternatively, pullback moves could aim for the aforementioned wedge’s lower line, near 0.6695 at the latest, a break of which will confirm the bearish chart pattern that theoretically suggests a south-run towards the mid-0.6400s.
During the fall, tops marked in October near 0.6550 and 0.6520, as well as the 100-DMA level surrounding 0.6675, could act as intermediate halts.
AUD/USD: Daily 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.
