AUD/USD Price Analysis: Pokes key support near 0.7170 after Wednesday’s bearish candlestick
- AUD/USD stays on the back foot as sellers attack three-week-old support line.
- Wednesday’s Gravestone Doji, failures to cross 100-DMA favor bears.
- May’s high acts as an additional upside filter while area surrounding 0.7130-20 probes downside.
AUD/USD remains on the back foot around 0.7170, refreshing daily lows, as bears jostle with a short-term key support line during Thursday’s Asian session.
In doing so, the Aussie pair justifies the previous day’s bearish candlestick, namely the “Gravestone Doji”, as well as failures to cross the 100-DMA.
That said, the quote’s further downside hinges on a clear break of 0.7170. Even so, multiple tops marked during May 23-26 near 0.7130-20, will challenge AUD/USD sellers before directing them to the 0.7100 threshold.
In a case where the quote remains bearish past 0.7100, the 23.6% Fibonacci retracement of April-May fall, close to 0.7025, will be in focus.
Alternatively, a daily closing beyond the 100-DMA level of 0.7230 isn’t a welcome card for the AUD/USD buyers as the last monthly top surrounding 0.7270 offers an extra filter to the north.
Following that, a run-up towards the 61.8% Fibonacci retracement level near 0.7345 can’t be ruled out.
AUD/USD: Daily 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.
