AUD/USD Price Analysis: Takes offers at fresh monthly low, 0.7225-20 in focus
- AUD/USD extends losses to renews multi-day low, ignores oversold RSI conditions.
- Bearish MACD, sustained trading below 61.8% Fibonacci retracement level directs sellers to two-month-old horizontal support.
AUD/USD remains on the back foot for the second consecutive day, refreshing monthly low to 0.7262 heading into Wednesday’s European session.
In doing so the Aussie pair extends pullback from a convergence of a fortnight-long resistance line and 50-SMA below the 61.8% Fibonacci retracement (Fibo.) of late September-October upside.
Given the bearish MACD signals favor AUD/USD sellers, the quote’s further declines towards a horizontal area comprising multiple lows marked since September 20, around 0.7225-20, can’t be ruled out.
However, the pair’s further weakness will be challenged by the oversold RSI conditions, which if ignored could drag the September’s low of 0.7170.
Meanwhile, the corrective pullback may eye the 61.8% Fibo. level of 0.7317 but remains ineffective until crossing the 0.7355 resistance confluence.
Even if the AUD/USD buyers manage to cross the 0.7355 hurdle, the 200-SMA around 0.7400 will be in focus.
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.
