AUD/USD Price Analysis: Looks for deeper correction below the 50-hour SMA
- AUD/USD remains pressurized in the early European session.
- More downside on the cards if price breaks below the 50-hour SMA.
- Negative MACD echoes negative bias.
The AUD/USD trades with modest losses in the early European session. The pair opened higher but fizzled out rather quickly to the session’s low near 0.7710.
At the time of writing, the AUD/USD pair is trading at 0.7222, down 0.06% on the day.
AUD/USD daily chart
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On the daily chart, the AUD/USD pair is accumulating below the 0.7750 key psychological mark. The formation of the Doji candlestick following the previous day's huge bearish candle indicates indecisiveness in the market.
Price correction below the 50-hour Simple Moving Average, placed at 0.7710, could provide a hint at the continuation of the prevailing trend. In doing so, the first support would emerge at the May 4 low at 0.7674 followed by the April 14 low at 0.7633.
The receding Moving Average Convergence Divergence (MACD) indicator signals more downside toward the 0.7600 swing lows.
On the flip side, if price reverses, then the first hurdle could be located at the 0.7750 horizontal resistance level.
The next area of resistance could be the high of May 6 at 0.7788 followed by the previous day’s high of 0.7847.
AUD/USD Additional Levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
