AUD/USD Price Analysis: Mildly bid inside bear flag, 0.7005 is the key
- AUD/USD consolidates recent losses inside bearish chart pattern.
- Monthly resistance line, 200-SMA also challenge bulls, RSI hints at further grinding towards the south.
- November 2020 low acts as extra support before theoretical target near 0.6825.
AUD/USD struggles to extend corrective pullback from yearly low, retreats to 0.7015 heading into Monday’s European session. The Aussie pair portrays a short-term bearish chart pattern, called bear flag, on the 30-minute play, up 0.17% intraday at the latest.
It should be noted, however, that the RSI line hints at further consolidation of the prices before confirming the formation with a downside break of 0.7005 support.
Also adding to the downside filter is the November 2020 low near 0.6990.
If the quote drops below 0.6990, it becomes vulnerable, at least theoretically, to aim for the 0.6825 support level.
Meanwhile, recovery moves remain elusive below the upper line of the stated flag, near 0.7035 at the latest.
Additionally challenging AUD/USD buyers is a downward sloping trend line from December 01 and 200-DMA, respectively near 0.7050 and 0.7100.
AUD/USD: 30-minute 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.
