AUD/USD Price Analysis: Sellers eye 0.6800 as a bearish-engulfing candle pattern emerges

AUD/USD is about to finish the week with losses of 1.10%.
A bearish-engulfing candle pattern and the RSI’s crossing below 50 are two reasons that could tumble the AUD/USD.
AUD/USD sellers eye a break below 0.6900, on its way towards 0.6800.

The AUD/USD drops substantially, courtesy of upbeat US economic data, which sent the major plunging from daily highs around 0.6974 towards the day’s lows at 0.6869, though as Wall Street closed, the Aussie trimmed some of those losses. At the time of writing, the AUD/USD is trading at 0.6910, down 0.82%.

AUD/USD Price Analysis: Technical outlook

The AUD/USD daily chart portrays the pair below the confluence of the August 4 low and the 50-day EMA around 0.6952. It’s worth noting that earlier, the major dived below the intersection of a five-month-old downslope trendline and the 20-day EMA, around 0.6892, but it was short-lived and bounced toward current exchange rates.

Still, the AUD/USD is downward biased for some reasons: first, the Relative Strength Index (RSI) just crossed below the 50-midline, indicating sellers are gathering momentum. And the second reason would be that the last two-daily candles formed a bearish-engulfing candle pattern, implying that sellers outweighed buyers.

Therefore, the AUD/USD path of least resistance is downwards, and the pair’s first support would be the 0.6900 figure. Once cleared, the next stop will be the 20-day EMA at 0.6892, followed by the 0.6800 mark.

AUD/USD Key Technical Levels

AUD/USD

Overview
Today last price	0.6910
Today Daily Change	-0.0082
Today Daily Change %	-1.18
Today daily open	0.697

Trends
Daily SMA20	0.6892
Daily SMA50	0.696
Daily SMA100	0.7111
Daily SMA200	0.7164

Levels
Previous Daily High	0.6991
Previous Daily Low	0.6934
Previous Weekly High	0.7033
Previous Weekly Low	0.6879
Previous Monthly High	0.7033
Previous Monthly Low	0.668
Daily Fibonacci 38.2%	0.6969
Daily Fibonacci 61.8%	0.6956
Daily Pivot Point S1	0.6939
Daily Pivot Point S2	0.6909
Daily Pivot Point S3	0.6883
Daily Pivot Point R1	0.6996
Daily Pivot Point R2	0.7022
Daily Pivot Point R3	0.7052

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