AUD/USD Price Analysis: Bounce rejected above 0.64

AUD/USD's technical charts maintain bearish bias after rejection above 0.64.
The pair risks falling to a 50-day average located below 0.63.
Bounce from the 5-week average is needed to save the day for the bulls.

Omkar Godbole FXStreet Contributor

AUD/USD's bounce from the session low of 0.6373 faced rejection 0.6405 a few minutes before press time and the pair is now trading near the 4H 100-candle average of 0.6389.

The path of least resistance remains to the downside, as suggested by Friday's bearish marubozu candle, which comprises a big red body and little or no wicks. It occurs when sellers remain in control from the opening bell to the closing bell and is considered a sign of strong bearish sentiment.

The long upper wick attached to last week's candle is also indicative of buyer exhaustion. As a result, a deeper pullback to the 50-day average at 0.6291 may be seen.

On the other hand, a bounce from the ascending 5-week average 0.6382, if followed by a move above 0.6417 (Asian session high), would revive the bullish setup and expose the previous week's high of 0.6570.

Daily chart

Trend: Bearish

Technical levels

1. R3 0.6588
2. R2 0.655
3. R1 0.6484
PP 0.6447
1. S1 0.6381
2. S2 0.6343
3. S3 0.6277

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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