AUD/USD Price Analysis: Snaps two-day rebound within bear flag, 0.6510 eyed
- AUD/USD takes offers to refresh intraday low inside bearish chart formation.
- Absence of oversold RSI (14) line adds strength to downside bias.
- Aussie pair’s recovery remains elusive unless breaking one-week-old falling resistance line.
AUD/USD renews its intraday bottom around 0.6530 as it prints the first daily loss in three amid early Tuesday morning in Europe. In doing so, the Aussie pair fails to cheer broad US Dollar strength amid fears of softer economic growth in Australia.
While portraying the same, the AUD/USD pair prints a bearish flag chart pattern on the hourly timeframe.
Apart from the bearish chart formation, a near 50.0 level of the RSI (14) line allows the Aussie pair sellers to keep the reins.
That said, a convergence of the 50-Hour Moving Average (HMA) and an ascending support line from Friday restricts the AUD/USD pair’s immediate downside to around 0.6530 within the flag.
Following that, the 0.6510 level will be the key as a break of which confirms the bearish chart formation, making it vulnerable to refreshing the yearly low, currently around 0.6490.
It’s worth noting that the bear flag confirmation hints at a theoretical target of around 0.6340.
Meanwhile, the AUD/USD pair’s corrective bounce needs to cross the stated flag’s top line, close to 0.6560 at the latest.
Even so, the 200-HMA and a one-week-old descending resistance line, near 0.6615 by the press time, could challenge the Aussie bulls before giving them control.
AUD/USD: Hourly 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.
