AUD/USD Price Analysis: Drops to fortnight low under 0.7200 on rising wedge confirmation

AUD/USD drops to the lowest in two weeks on confirming a bearish chart pattern.
RSI retreat, receding bullish bias of MACD also favor sellers.
Key SMAs restrict immediate upside, 2021 bottom lures bears.

Anil Panchal FXStreet

AUD/USD takes offers around 0.7170, down 0.70% intraday to flash a two-week low during early Thursday morning in Europe.

Following a clear downside break of 21-DMA, AUD/USD prices broke the support line of a monthly rising wedge bearish chart formation, which in turn underpin the latest losses of the quote. Also adding to the bearish bias are the downbeat RSI and MACD conditions.

That said, the late December’s swing low around 0.7080 may offer an intermediate halt during the quote’s theoretical target surrounding the 0.7000 threshold, comprising 2021 low.

In a case where the AUD/USD prices remain bearish past 0.7000, June 2020 low near 0.6775 will be in focus.

Alternatively, the support-turned-resistance line of the wedge and 21-DMA, respectively around 0.7185 and 0.7195, will restrict the quote’s corrective pullback.

It’s worth noting that a clear upside break of 0.7195 will propel the quote towards 50% Fibonacci retracement (Fibo.) of October-December downside, around 0.7275.

Though, the AUD/USD pair’s advances beyond 50% Fibo. will be challenged by the 100-DMA and resistance line of the stated wedge, close to 0.7290 and 0.7305 in that order.

AUD/USD; Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	0.7174
Today Daily Change	-0.0046
Today Daily Change %	-0.64%
Today daily open	0.722

Trends
Daily SMA20	0.7194
Daily SMA50	0.7242
Daily SMA100	0.7287
Daily SMA200	0.7439

Levels
Previous Daily High	0.7273
Previous Daily Low	0.7216
Previous Weekly High	0.7278
Previous Weekly Low	0.7204
Previous Monthly High	0.7278
Previous Monthly Low	0.6993
Daily Fibonacci 38.2%	0.7238
Daily Fibonacci 61.8%	0.7251
Daily Pivot Point S1	0.72
Daily Pivot Point S2	0.7179
Daily Pivot Point S3	0.7143
Daily Pivot Point R1	0.7257
Daily Pivot Point R2	0.7293
Daily Pivot Point R3	0.7314

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.

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