AUD/USD Price Analysis: Vulnerable near 2-month lows, around 0.7030 confluence support


  • AUD/USD remained under some heavy selling pressure for the fifth consecutive session.
  • Slightly oversold conditions warrant some caution before placing aggressive bearish bets.
  • The set-up still supports prospects for an extension of the ongoing downward trajectory.

The AUD/USD pair extended its recent sharp pullback from levels beyond the 0.7400 mark and witnessed some heavy selling for the fifth consecutive session. The downward momentum pushed the pair to two-month lows, around the 0.7030 level, closer to a previous strong resistance breakpoint.

The mentioned region also marks an important confluence support level – comprising of 100-day SMA and the 61.8% Fibonacci level of the 0.6776-0.7414 positive move. A convincing breakthrough will be seen as a fresh trigger for bearish traders and pave the way for a further near-term depreciating move.

Meanwhile, technical indicators on hourly charts are already flashing oversold conditions. This, coupled with the fact that RSI (14) on the daily chart has moved on the verge of sliding below the 30 mark, warrants some near-term consolidation or a modest bounce before the next leg down.

That said, any attempted recovery move back towards the 0.7070-75 region might still be seen as a selling opportunity. This, in turn, should keep a lid on further gains for the major near the 50% Fibo level, just ahead of the 0.7100 round-figure mark.

Conversely, sustained weakness below the 0.7030 congestion zone now seems to accelerate the fall towards the key 0.7000 psychological mark. Some follow-through selling has the potential to drag AUD/USD further towards the next major support near the 0.6925 horizontal zone.

AUD/USD daily chart

fxsoriginal

Technical levels to watch

AUD/USD

Overview
Today last price 0.7034
Today Daily Change -0.0043
Today Daily Change % -0.61
Today daily open 0.7077
 
Trends
Daily SMA20 0.7278
Daily SMA50 0.7201
Daily SMA100 0.6996
Daily SMA200 0.6772
 
Levels
Previous Daily High 0.7178
Previous Daily Low 0.7068
Previous Weekly High 0.7346
Previous Weekly Low 0.7254
Previous Monthly High 0.7416
Previous Monthly Low 0.7076
Daily Fibonacci 38.2% 0.711
Daily Fibonacci 61.8% 0.7136
Daily Pivot Point S1 0.7037
Daily Pivot Point S2 0.6997
Daily Pivot Point S3 0.6926
Daily Pivot Point R1 0.7148
Daily Pivot Point R2 0.7218
Daily Pivot Point R3 0.7258

 

 

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