AUD/USD Price Analysis: Recovery moves fade below 50-DMA
- AUD/USD remains indecisive after bouncing off three-week low the previous day.
- Bearish MACD signals, sustained trading below 50-DMA keeps sellers hopeful.
- 23.6% Fibonacci retracement limits immediate downside, 100-DMA acts as an extra hurdle to the north.
AUD/USD treads water around 0.7150, fading the bounce off multi-day low during Wednesday’s Asian session.
In doing so, the Aussie pair remains below 50-DMA amid bearish MACD signals, which in turn suggests the quote’s further downside.
However, fresh declines will wait for a clear break of the 23.6% Fibonacci retracement (Fibo.) late June to December 2021 downside, near 0.7140.
Following that, the 0.7080 mark may offer an intermediate halt during the slump to the year 2021 low of 0.6993.
It’s worth noting that the 61.8% Fibonacci Expansion (FE) of the pair’s moves between June 26 to January 13, around 0.6920, will lure the AUD/USD bears after 0.6993.
Alternatively, recovery moves may initially battle the 50-DMA level of 0.7182 before challenging the 38.2% Fibo. of 0.7230.
It should be noted, however, that the 100-DMA level of 0.7270 and the monthly high of 0.7315 act as tough resistance for AUD/USD bulls to watch past 0.7230.
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.
