AUD/USD Price Analysis: Well-set to refresh two-year low around 0.6550

AUD/USD remains on the back foot around 29-month low.
Trend widening formation, oversold RSI could restrict short-term downside.
50-SMA could test immediate upside, May 2020 bottom can probe bears.

Anil Panchal FXStreet

AUD/USD bears attack the 0.6600 threshold while refreshing the multi-month low during Thursday’s Asian session. In doing so, the Aussie pair remains inside a falling megaphone trend widening chart pattern amid the risk-off mood.

Given the bearish chart formation and the risk-aversion, as well as the quote’s sustained trading below the 50-SMA, the AUD/USD prices are likely to refresh the 29-month bottom.

In that case, the stated formation’s support line near 0.6550 could challenge the pair bears before directing them to the May 2020 low near 0.6370.

Should the AUD/USD pair remains bearish past 0.6370, the odds of its slump towards the late March 2020 swing high near 0.6215 can’t be ruled out.

Alternatively, recovery moves will initially aim for the 50-SMA hurdle surrounding 0.6735 before highlighting the stated bearish chart formation’s upper line, close to 0.6865 at the latest.

Even so, the monthly high near 0.6915 and the 0.7000 psychological magnet could challenge the Aussie pair’s further upside before giving control to the bulls.

AUD/USD: Four-hour chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	0.6596
Today Daily Change	-0.0033
Today Daily Change %	-0.50%
Today daily open	0.6629

Trends
Daily SMA20	0.6792
Daily SMA50	0.6884
Daily SMA100	0.6938
Daily SMA200	0.71

Levels
Previous Daily High	0.6706
Previous Daily Low	0.6622
Previous Weekly High	0.6916
Previous Weekly Low	0.667
Previous Monthly High	0.7137
Previous Monthly Low	0.6835
Daily Fibonacci 38.2%	0.6654
Daily Fibonacci 61.8%	0.6673
Daily Pivot Point S1	0.6599
Daily Pivot Point S2	0.6568
Daily Pivot Point S3	0.6515
Daily Pivot Point R1	0.6683
Daily Pivot Point R2	0.6736
Daily Pivot Point R3	0.6767

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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