AUD/USD Price Analysis: Pares weekly losses within bearish channel below 200-SMA
- AUD/USD clings to mild gains within two-week-old bearish channel.
- Below 50.0 RSI levels suggest corrective bounce but descending trend channel, sustained trading below 200-SMA favor Aussie sellers.
- Intraday sellers may wait for 0.6600 breakdown for fresh entry.
AUD/USD picks up bids to extend the previous day’s corrective bounce off a three-week low to 0.6630 heading into Friday’s European session. In doing so, the Aussie pair cheers the US Dollar’s retreat while staying within a fortnight-old descending trend channel.
Not only the bearish chart formation but the quote’s sustained trading below the 200-SMA also keeps the pair sellers hopeful.
However, the recent bullish MACD signals and the RSI (14) rebound from the oversold territory underpin the hopes of the AUD/USD pair’s further recovery.
Though the upside remains elusive until staying below the stated channel’s top line, close to 0.6650 by the press time.
Even if the AUD/USD pair manages to cross the 0.6650 hurdle, the 200-SMA level of 0.6685 and the 0.6700 round figure can check the bulls before giving them control.
It should be observed that the weekly high of 0.6720 will act as the final defense of the AUD/USD bears.
On the flip side, ascending trend line from Wednesday, around the 0.6600 round figure, restricts the short-term AUD/USD downside.
Following that, the bearish channel’s bottom line and the 78.6% Fibonacci retracement level of the pair’s late May to mid-June upside, near 0.6560-55, will be crucial to watch for further guidance.
AUD/USD: Four-hour 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.
