AUD/USD Price Analysis: On the way to 0.7035 key support
- AUD/USD takes offers to renew intraday low, down for the third consecutive day.
- Break of two-week-old support line, steady RSI keep sellers hopeful.
- 10-DMA, 20-DMA and resistance-turned-support from early April together offer strong challenge to bears.
- Bulls need to cross weekly top before eyeing the monthly peak.
AUD/USD holds lower ground near 0.7065 as it prints a three-day downtrend heading into Thursday’s European session. In doing so, the Aussie pair breaks a fortnight-long support line.
In addition to the support break, the steady RSI and the recent pullback from a three-week high signal the AUD/USD pair’s further downside.
However, a confluence of the 10-DMA, 20-DMA and previous resistance line from early April, near 0.7035, appears a tough nut to crack for the bears.
Following that, the 0.6950 level may act as the last defense of the AUD/USD buyers before directing the quote towards the monthly low of 0.6828.
Alternatively, recovery moves need to refresh the weekly high, currently around 0.7130, to convince buyers.
Even so, the 0.7200 threshold and the monthly peak surrounding 0.7270 could challenge the AUD/USD bulls.
Overall, AUD/USD is likely to decline further but the downside room appears limited.
AUD/USD: Daily chart
Trend: Further downside expected