AUD/USD Price Analysis: Rising wedge confirmation teases bears below 0.6680 previous support
- AUD/USD licks its wounds after posting weekly loss, as well as confirming bearish chart formation.
- Downbeat oscillators, key SMAs also challenge Aussie pair buyers.
- Monthly low can act as intermediate halt during theoretical target surrounding October 2022 peak.
AUD/USD buyers struggle to keep the reins around 0.6650 during Monday’s sluggish trading session, after a volatile week. In doing so, the Aussie pair licks its wounds after posting the weekly loss but lacks recovery momentum to extend the late Friday’s corrective bounce off a one-week low.
It should be noted that the AUD/USD pair’s confirmation of a two-week-old rising wedge bearish chart formations joins the bearish MACD signals and downbeat RSI (14), not oversold, to keep sellers hopeful.
That said, the latest trough surrounding 0.6625 lures intraday sellers of the Aussie pair before highlighting the monthly low of 0.6564.
Following that, the theoretical target of rising wedge confirmation, surrounding 0.6650, joins the October 2022 peak of near 0.6645, to offer strong support to the sellers.
On the flip side, the 100-bar Simple Moving Average (SMA), near 0.6670 at the latest, guards immediate recovery moves of the AUD/USD pair before the stated wedge’s lower line, around 0.6680.
Even if the Aussie pair crosses the 0.6680 support-turned-resistance, the wedge’s top line and the 200-SMA, respectively near 0.6750 and 0.6760, could challenge the bulls.
It’s worth observing that the monthly high of around 0.6785 acts as the last defense of the AUD/USD bears.
AUD/USD: Four-hour chart
Trend: Further 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.
