AUD/USD Price Analysis: Marubozu advocates more weakness ahead, 0.6670-0.6700 the demand zone
- Investors should brace for more downside on Bearish Marubozu formation.
- The 50-EMA has acted as a major hurdle for the asset near 0.6900.
- The RSI (14) is on the verge of dropping into the bearish range of 20.00-40.00.
The AUD/USD pair is attempting to recover after a bloodbath. The asset slipped vertically to near 0.6725 after the release of an elevated US inflation rate. An attempt of a rebound could be a dead cat bounce as strength is not visible. In the late Tokyo session, the major is juggling in a narrow range of 0.6723-0.6747.
The formation of a Bearish Marubozu candlestick pattern has concluded the short-term pullback move. The occurrence of the above-mentioned candlestick pattern shows the strength of the greenback bulls and advocates more weakness ahead.
The asset has sensed resistance from the 50-period Exponential Moving Average (EMA) at around 0.6900. This will continue to remain a hurdle for the aussie bulls.
Meanwhile, the Relative Strength Index (RSI) (14) is on the verge of dropping into the bearish range of 20.00-40.00. This will trigger a downside momentum and will bring more weakness to the counter.
A break below Wednesday’s low at 0.6723 will drag the asset towards the lower portion of the demand zone placed in a range of 0.6670-0.6700 on a daily scale. A breach of the demand zone will unleash the greenback bulls and the asset will decline towards the round-level support of 0.6600.
On the flip side, a break above September 5 high at 0.6804 will drive the asset towards August 29 low at 0.6841, followed by August 31 high at 0.6904.
AUD/USD daily chart
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
