AUD/USD Price Analysis: Pierces yearly support line to aim for 0.7105
- AUD/USD takes offers to refresh three-month low during a three-day downtrend.
- Oversold RSI conditions probe bears at the key support line, daily closing awaited.
- Bear cross keeps buyers away until crossing 100-DMA.
AUD/USD marks the heaviest daily fall in three weeks while taking offers around 0.7135, down 0.78% during Friday morning in Europe.
The Aussie pair bears cheer a sustained trading below a three-month-old support line, now resistance around 0.7260, as well as downbeat MACD signals and a bear cross of the 20-DMA to 100-DMA, to aim for the yearly bottom of 0.7105.
However, oversold RSI conditions may challenge the sellers around an ascending support line from November 2020, around 0.7140. Hence, a daily closing below the recently broken trend line becomes necessary to convince the bears.
Should the pair sellers conquer the key support line, a south-run towards the 2021 bottom surrounding 0.7100, marked in August, become imminent.
Meanwhile, corrective pullback remains elusive below the previous support line from August 20, near 0.7260.
Even so, bulls remain cautious until crossing the 20-DMA and the 100-DMA, respectively close to 0.7315 and 0.7345.
To sum up, AUD/USD sellers have some downside room to travel before hitting the key hurdle.
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.
