AUD/USD Price Analysis: Bears jostle with 100-SMA, weekly support below 0.7000
- AUD/USD remains on the back foot despite the latest consolidation of the previous day’s losses.
- Convergence of 100-HMA, one-week-old rising support line restrict immediate downside.
- Fortnight-long horizontal area, bearish MACD signals challenge buyers.
AUD/USD sellers attack short-term key support around 0.6960 as traders struggle to pare the biggest daily loss in a week ahead of Australia’s key jobs report on Thursday.
That said, the Aussie pair presently pokes a confluence of the 100-HMA and a weekly rising trend line, around 0.6960.
Given the bearish MACD signals, coupled with the failures to rebound from the aforementioned support line, AUD/USD sellers are likely to keep reins.
However, a clear downside break of the 0.6960 support confluence becomes necessary for the bear’s return. Following that, the 0.6900 threshold and the monthly low near 0.6830 will be in focus.
Meanwhile, recovery remains elusive until the AUD/USD prices cross a two-week-long horizontal resistance area near 0.7040-60.
In a case where AUD/USD rises past 0.7060, multiple tops marked during early May near 0.7135-40 may entertain the bulls.
AUD/USD: Hourly 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.
