AUD/USD Price Analysis: Bulls step back from 200-DMA
- AUD/USD fades the previous day’s rebound from yearly low.
- RSI recovery from oversold area favors the pullback moves.
- Horizontal line around 0.7590 becomes the key hurdle, bears may have 61.8% Fibonacci retracement level on the radar.
AUD/USD refreshes intraday low near 0.7520, down 0.11% on a day, while consolidating the previous day’s gains amid Tuesday’s Asian session. In doing so, the quote justifies the last week’s bearish momentum on the break of the 200-day SMA (DMA).
Given the absence of oversold RSI, the pair’s failures to cross the crucial DMA hurdle during Monday’s recovery enable the bears to again aim for the late December lows near 0.7460.
During the fall, the 50% Fibonacci retracement of November 2020 to February 2021 upside, near the 0.7500 threshold, as well as the recent low of 0.7477, can test the AUD/USD bears.
Although RSI conditions may trigger another bounce off 0.7460, any further downside may not hesitate to challenge the 61.8% Fibonacci retracement level of 0.7378.
Meanwhile, the 200-DMA level of 0.7556 isn’t the only barrier for AUD/USD bulls as the yearly horizontal line surrounding 0.7590 becomes a tough nut to crack for them.
Also acting as the upside hurdle is the early month’s low around 0.7645 and May’s bottom of 0.7674.
AUD/USD daily 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.
