AUD/USD Technical Analysis: Oversold conditions warrant some consolidation before next leg lower

Haresh Menghani FXStreet

• The pair extended this week's sharp retracement slide near five-month tops and has been trending lower alongside a short-term descending trend-channel formation on the 1-hourly chart.

• Bullish rejection near the 0.7400 handle and failure ahead of the very important 200-day SMA continues to prompt some heavy long-unwinding pressure for the third consecutive session.

• Technical indicators on 1-hourly/4-hourly charts are already pointing to slightly near-term oversold conditions but have just started gaining negative momentum on the daily chart.

• The pair has now dropped to over one-week lows and the set-up points to a continuation of the downfall, though warrant some near-term consolidation before the next leg lower.

AUD/USD 1-hourly chart

AUD/USD

Overview:
    Today Last Price: 0.7219
    Today Daily change: -50 pips
    Today Daily change %: -0.688%
    Today Daily Open: 0.7269
Trends:
    Previous Daily SMA20: 0.7267
    Previous Daily SMA50: 0.7185
    Previous Daily SMA100: 0.724
    Previous Daily SMA200: 0.7416
Levels:
    Previous Daily High: 0.7356
    Previous Daily Low: 0.7259
    Previous Weekly High: 0.7345
    Previous Weekly Low: 0.7199
    Previous Monthly High: 0.7345
    Previous Monthly Low: 0.7072
    Previous Daily Fibonacci 38.2%: 0.7296
    Previous Daily Fibonacci 61.8%: 0.7319
    Previous Daily Pivot Point S1: 0.7233
    Previous Daily Pivot Point S2: 0.7198
    Previous Daily Pivot Point S3: 0.7136
    Previous Daily Pivot Point R1: 0.733
    Previous Daily Pivot Point R2: 0.7392
    Previous Daily Pivot Point R3: 0.7428

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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