AUD/USD Price Analysis: Oversold RSI, 78.6% Fibonacci ratio check Aussie sellers targeting 0.6300
- AUD/USD remains depressed at YTD low, prints eight-day downtrend.
- RSI (14) line, 78.6% Fibonacci retracement prod south-run aiming theoretical target of “Double Tops”.
- Corrective bounce can aim for May’s peak but buyers remain off guard below 0.6600.
AUD/USD bears take a breather after refreshing the yearly low as oversold RSI joins the key Fibonacci ratio to mark an unimpressive effort to prod downside. That said, the Aussie pair dropped to 0.6364 before recently poking 0.6390 heading into Thursday’s European session.
That said, the RSI (14) line stays deep into the oversold territory suggesting an imminent corrective bounce. Also challenging the quote’s further weakness is the 78.6% Fibonacci retracement of the AUD/USD pair’s upside from October 2022 to February 2023, close to 0.6375.
With this, the quote could pare some of its latest losses, which in turn highlights the May month’s bottom of around 0.6460 as an immediate upside hurdle. However, lows marked in late June and early July around the 0.6600 round figure appear the key resistance for the AUD/USD buyers to cross to retake control.
It’s worth noting that the AUD/USD pair’s confirmed the “Double Tops” bearish chart formation earlier in the month by breaking the 0.6600 mark. The same suggests the theoretical target of 0.6300 unless the quote stays beneath 0.6600.
In a case where the AUD/USD pair rises past 0.6600, its run-up towards the early July swing high of around 0.6700 and the monthly peak of 0.6725 can’t be ruled out.
Alternatively, a downside break of the 0.6300 theoretical target will direct AUD/USD toward the previous yearly low of around 0.6170.
AUD/USD: Daily chart
Trend: Further downside 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.
