• 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. 

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
  1. PP 0.6447
    1. S1 0.6381
    2. S2 0.6343
    3. S3 0.6277

 

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