AUD/USD Price Analysis: Remains vulnerable to refresh 2023 low, eyes on 0.6330
- AUD/USD reverses the previous day’s corrective bounce off yearly low despite lacking momentum of late.
- Six-month-old descending trend line challenges Aussie bears amid oversold RSI.
- Recovery remains elusive below 0.6460 resistance confluence; 0.6500 adds to the upside filters.
AUD/USD holds lower grounds near 0.6375-70 amid the early hours of Thursday’s European session, fading the previous day’s rebound from a 10-month low.
That said, the mixed trade numbers from Australia and China jostle with a lack of hawkish aura in the Reserve Bank of Australia (RBA) Governor Philip Lowe’s last statements as the Aussie central bank leader seem to weigh on the Aussie pair of late.
However, the nearly oversold RSI (14) line suggests limited downside room for the AUD/USD pair, which in turn highlights a downward-sloping support line from early March, close to 0.6330 at the latest.
In a case where the Aussie bears ignore the RSI conditions and break the stated key support line, the November 2022 bottom of around 0.6272 will act as the final defense of the pair buyers before highlighting the odds of witnessing a fall towards the last yearly trough of 0.6170.
Meanwhile, the AUD/USD pairs’ recovery remains unimpressive below a convergence of the 21-day Exponential Moving Average (EMA) and a downward-sloping resistance line from July 13, close to 0.6460 at the latest.
Following that, multiple levels marked since late May surrounding 0.6500 could check the AUD/USD bulls before giving them control.
Overall, the AUD/USD pair remains on the bear’s radar even as the downside room appears limited.
AUD/USD: Daily chart
Trend: Limited 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.
