AUD/USD Price Analysis: Bears take a breather on the way to 0.7380
- AUD/USD stays range-bound following the biggest daily slump in five months.
- Rising wedge confirmation, steady declines below 0.7460 support convergence keep sellers hopeful.
- Short-term horizontal support area, 200-SMA put a floor under the prices amid oversold RSI.
AUD/USD consolidates the RBA-led big slump within an 18-pip trading range, picking up bids near 0.7438 heading into the European session on Wednesday.
Although oversold RSI conditions probe the immediate downside of the Aussie pair, the bears remain hopeful of breaking the key technical supports the previous day.
After confirming a rising wedge bearish chart pattern on the RBA’s verdict to give up the bond yield targeting, the Aussie pair also slipped below a convergence of 100-SMA and an ascending trend line from September 29, around 0.7460.
That said, the quote remains on the bear’s radar until crossing the 0.7460 support-turned-resistance. Even so, the lower line of the wedge, around 0.7500 adds to the upside filters before recalling the AUD/USD buyers.
In a case where the pair stays strong beyond the 0.7500 threshold, the upper line of the stated bearish formation and October’s peak will lure the bulls around 0.7560.
Alternatively, three-week-old horizontal support, near 0.7380, seems live on the AUD/USD pair seller’s radar but any further weakness will be challenged by the 200-SMA level around 0.7360.
AUD/USD: Four-hour chart
Trend: Bearish
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.
