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.

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	0.6629
Today Daily Change	0.0013
Today Daily Change %	0.20%
Today daily open	0.6616

Trends
Daily SMA20	0.6726
Daily SMA50	0.6674
Daily SMA100	0.6703
Daily SMA200	0.6692

Levels
Previous Daily High	0.6641
Previous Daily Low	0.6595
Previous Weekly High	0.6886
Previous Weekly Low	0.6663
Previous Monthly High	0.6818
Previous Monthly Low	0.6458
Daily Fibonacci 38.2%	0.6623
Daily Fibonacci 61.8%	0.6613
Daily Pivot Point S1	0.6594
Daily Pivot Point S2	0.6572
Daily Pivot Point S3	0.6549
Daily Pivot Point R1	0.664
Daily Pivot Point R2	0.6663
Daily Pivot Point R3	0.6685

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.

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