AUD/USD Price Analysis: Sellers look to 78.6% Fibonacci retracement

AUD/USD fades bounce off two-month low, grinds lower.
Bearish MACD signals, sustained break of key support line favor sellers.
RSI conditions, key technical support challenge further downside.
Bulls remain away below monthly resistance line, 61.8% Fibonacci retracement adds to the upside filters.

Anil Panchal FXStreet

AUD/USD stays depressed around the September lows, sidelined near 0.7220 during early Wednesday.

In doing so, the Aussie pair aims for the 78.6% Fibonacci retracement (Fibo.) of November 2020 to February 2021 upside, around 0.7200 amid bearish MACD signals and a clear downside break of the three-month-old ascending trend line.

It should be noted, however, that nearly oversold RSI conditions may challenge the AUD/USD sellers past 0.7200, a break of which highlights October’s low and a yearly support line, respectively near 0.7170 and 0.7140, for the pair nears.

In a case where the quote remains bearish past 0.7140, the 2021 bottom of 0.7105 will be in focus.

Alternatively, a corrective pullback should not only offer a daily closing beyond the previous support line from August, close to 0.7260, but also successfully cross a downward sloping resistance line from November 02, around 0.7295, to convince the AUD/USD bull’s return.

Following that, the 61.8% Fibo. level near 0.7360 should gain the market’s attention.

AUD/USD: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	0.7221
Today Daily Change	-0.0008
Today Daily Change %	-0.11%
Today daily open	0.7229

Trends
Daily SMA20	0.737
Daily SMA50	0.7349
Daily SMA100	0.7352
Daily SMA200	0.7528

Levels
Previous Daily High	0.7238
Previous Daily Low	0.7206
Previous Weekly High	0.7371
Previous Weekly Low	0.7227
Previous Monthly High	0.7557
Previous Monthly Low	0.7191
Daily Fibonacci 38.2%	0.7226
Daily Fibonacci 61.8%	0.7219
Daily Pivot Point S1	0.7211
Daily Pivot Point S2	0.7193
Daily Pivot Point S3	0.7179
Daily Pivot Point R1	0.7242
Daily Pivot Point R2	0.7256
Daily Pivot Point R3	0.7274

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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