AUD/USD Price Analysis: Stays on the way to 0.6880 support
- AUD/USD holds lower ground near weekly low, prints three-day downtrend.
- MACD, RSI challenge corrective pullback, sustained trading below the key SMAs favor bears.
- Monthly low, 61.8% FE adds to the downside filters, 200-SMA holds gate for buyer’s entry.
AUD/USD remains pressured around 0.6900, despite the latest rebound from intraday low heading into Wednesday’s European session.
The Australian dollar (AUD) pair’s weakness could be linked to the downside RSI (14), not oversold, as well as bearish MACD signals.
Also favoring the quote’s bearish bias is the sustained trading below the 100 and 200-SMAs, not to forget a weekly descending resistance line.
That said, an upward sloping support line from June 14 restricts the AUD/USD pair’s immediate downside near 0.6880.
Following that, the monthly low of 0.6850 precedes the 61.8% Fibonacci Expansion (FE) of June 02-16 moves, near 0.6800, will be in focus.
Alternatively, recovery remains elusive below the aforementioned immediate descending resistance line, at 0.6960 by the press time.
Should AUD/USD buyers manage to cross the 0.6960 hurdle, the 100 and 200 SMAs, respectively near 0.6990 and 0.7050, will be crucial to watch before confirming the upside momentum.
Overall AUD/USD pair’s recent bounce appears nothing more than the corrective pullback amid a sluggish session.
AUD/USD: Four-hour chart
Trend: Further weakness 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.
