AUD/USD Price Analysis: Reverses RBA’s Lowe inspired gains near 0.6730 within bullish channel
- AUD/USD takes offers to refresh intraday low during two-day downtrend.
- 200-EMA prods Aussie pair’s fall inside one-month-old ascending trend channel.
- Impending bear cross on MACD lures sellers but 0.6670 is the key to confirming bearish trend.
AUD/USD remains depressed for the second consecutive day, refreshing intraday low near 0.6730 amid the early European session on Wednesday. In doing so, the Aussie pair reveres Reserve Bank of Australia (RBA) Governor Philip Lowe induced corrective bounce while poking the 200-bar Exponential Moving Average (EMA).
It’s worth noting that the quote’s U-turn from the aforementioned channel’s top line joins bearish MACD signals to favor the latest pullback in the AUD/USD price.
As a result, the Aussie bears are well-set to conquer the stated key EMA support of 0.6730 and aim for the 0.6700 round figure.
However, a convergence of the ascending trend channel’s lower line and 23.6% Fibonacci retracement level of the pair’s downturn from mid-February to March 10, around 0.6670, appear a tough nut to crack for the bears.
In a case where the AUD/USD drops below 0.6670, the odds of witnessing a fall towards targeting the YTD low, currently around 0.6565, can’t be ruled out.
On the contrary, recovery moves can aim for the aforementioned channel’s top line and 50% Fibonacci retracement, around 0.6800.
Following that, 0.6810 and 61.8% Fibonacci retracement of 0.6852 may act as intermediate halts during the run-up targeting February’s peak of 0.7030.
AUD/USD: Four-hour 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.
