AUD/USD Price Analysis: Seen falling to 0.7350 after breaching key daily support

AUD/USD wallows in yearly lows after the 0.7400 level caves in.
The pair breaches key support on the daily chart at 0.7480.
The aussie eyes more losses, with the daily RSI still not oversold.

Dhwani Mehta FXStreet

AUD/USD remains on a downward spiral for the third straight day this Monday, starting out a new week on the wrong footing, courtesy of the growing fears over the rapid spread of the Delta covid variant worldwide.

Covid cases in the UK and Australia jumped over the weekend, with Victoria announcing an extension to the lockdown, dents the sentiment around the higher-yielding aussie.

Investors flock to the safe-haven US dollar in times of uncertainty and panic, adding to the losses in the currency pair.

The downtrend in the spot could be also contributed to a bearish technical setup on the daily chart. The bears tightened their grip after the price breached the critical falling trendline support on the said time frame at 0.7380.

The 14-day Relative Strength Index (RSI) points south, sitting outside the oversold territory, suggesting that there is more play to the downside.

Therefore, a test of the 0.7350 psychological level cannot be ruled out if the yearly lows yield into the renewed selling pressure.

AUD/USD daily chart

On the other hand, any pullback attempts would face an immediate supply zone around daily highs of 0.7417.

Further up, Friday's high of 0.7444 could challenge the bullish commitments on the road to recovery.

AUD/USD additional levels to watch

AUD/USD

Overview
Today last price	0.7377
Today Daily Change	-0.0020
Today Daily Change %	-0.27
Today daily open	0.7398

Trends
Daily SMA20	0.7503
Daily SMA50	0.7636
Daily SMA100	0.7673
Daily SMA200	0.7587

Levels
Previous Daily High	0.7444
Previous Daily Low	0.7391
Previous Weekly High	0.7504
Previous Weekly Low	0.7391
Previous Monthly High	0.7794
Previous Monthly Low	0.7477
Daily Fibonacci 38.2%	0.7411
Daily Fibonacci 61.8%	0.7424
Daily Pivot Point S1	0.7378
Daily Pivot Point S2	0.7358
Daily Pivot Point S3	0.7325
Daily Pivot Point R1	0.7431
Daily Pivot Point R2	0.7464
Daily Pivot Point R3	0.7484

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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