AUD/USD Price Analysis: Drops towards 0.7300 even as sellers flirt with 20-DMA
- AUD/USD remains pressured after the heaviest daily fall in a week.
- MACD conditions, downside break of 50-DMA favor sellers.
- Bulls need to refresh monthly top for fresh entry.
AUD/USD stays depressed around 0.7315 after declining the most in a week the previous day. Although 20-DMA challenges the pair sellers, a clear downside break of 50-DMA, backed by downbeat MACD signals, keeps bears hopeful.
However, the 20-DMA level of 0.7315 and the 0.7300 round figure challenge the pair’s short-term declines.
Also acting as the key support is 23.6% Fibonacci retracement of AUD/USD south-run from June 25 to August 20, near 0.7225, which holds the key to the pair’s slump towards the yearly low of 0.7105.
Meanwhile, corrective pullback needs to cross the 50-DMA level of 0.7355 before directing the pair buyers to the 61.8% Fibonacci retracement level of 0.7420.
Even so, the quote remains on the bear’s radar until it stays below the monthly high of 0.7478.
Overall, AUD/USD bears are in control but may take a breather around the short-term moving average support.
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.
