AUD/USD technical analysis: January 2016 low acts as a buffer to 0.6680, RSI oversold

Break of May month low added selling pressure.
Oversold RSI, 2016 bottom may question bears targeting the YTD lows.

Anil Panchal FXStreet

Having slipped beneath May month bottom during Monday, the AUD/USD pair now takes the round close to the year 2016 low near 0.6830 ahead of the European open on Tuesday.

Not only strong support surrounding 0.6830 but oversold conditions of 14-day relative strength index (RSI) could challenge the Aussie pair’s further downturn, which if ignored could open the doors for its slump to January month’s flash crash low around 0.6680.

It should, however, be noted that 0.6700 round-figure might offer an intermediate halt during the plunge.

On the contrary, pair’s U-turn beyond 0.6860 can trigger fresh profit-booking towards 0.6900 and 0.6930 numbers to the north.

Additionally, sustained rise past-0.6930 enables the buyers to aim for 0.6970 and 50-day simple moving average (SMA) near 0.6995/0.7000.

AUD/USD daily chart

Trend: Pullback expected

1. R3 0.6912
2. R2 0.6899
3. R1 0.6875
PP 0.6862
1. S1 0.6838
2. S2 0.6825
3. S3 0.6801

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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