AUD/USD Price analysis: Renews two-year low as bears poke four-month-old support around 0.6500

AUD/USD remains pressured at 29-month low, retreats of late.
Descending support line from early May, oversold RSI restricts immediate downside.
Seven-week-old previous support line guards immediate recovery moves.
May 2020 low can lure sellers on defying the bearish channel formation.

Anil Panchal FXStreet

AUD/USD reverses the early Asian session corrective bounce on Monday as it drops back towards 0.6500, around 0.6515 by the press time. In doing so, the Aussie pair pokes the support line of a 4.5-month-old descending trend channel.

Given the oversold RSI (14) and the nearness to the key support, around 0.6500 by the press time, the Aussie pair may witness a corrective bounce.

The recovery moves, however, remain elusive until crossing a downward sloping trend line from August 05, previous support around the 0.6600 threshold.

Even so, the support-turned-resistance line from July, close to 0.6705 at the latest, could challenge the AUD/USD buyers before giving them control.

Alternatively, a clear downside break of the 0.6500 support could quickly fetch the Aussie pair towards the May 2020 lows near 0.6370.

Following that, the 78.6% Fibonacci Expansion (FE) of April-August moves, near 0.6360, could challenge the AUD/USD bears.

Overall, AUD/USD remains on the bear’s radar but the downside room appears limited.

AUD/USD: Daily chart

Trend: Bearish

additional important levels

Overview
Today last price	0.6515
Today Daily Change	-0.0011
Today Daily Change %	-0.17%
Today daily open	0.6526

Trends
Daily SMA20	0.6755
Daily SMA50	0.6876
Daily SMA100	0.6927
Daily SMA200	0.7094

Levels
Previous Daily High	0.6656
Previous Daily Low	0.6512
Previous Weekly High	0.6748
Previous Weekly Low	0.6512
Previous Monthly High	0.7137
Previous Monthly Low	0.6835
Daily Fibonacci 38.2%	0.6567
Daily Fibonacci 61.8%	0.6601
Daily Pivot Point S1	0.6473
Daily Pivot Point S2	0.642
Daily Pivot Point S3	0.6329
Daily Pivot Point R1	0.6617
Daily Pivot Point R2	0.6709
Daily Pivot Point R3	0.6762

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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