AUD/USD Price Analysis: Bears keep reins below weekly resistance line around 0.6765
- AUD/USD renews daily bottom, extends pullback from weekly resistance line.
- Downbeat RSI, bearish channel keep sellers hopeful to revisit yearly low.
- Bulls need validation from 100-SMA, August 2019 low lures sellers.
AUD/USD takes offers to refresh intrday low around 0.6730 as it extends pullback from the one-week-old resistance line during early Friday morning in Europe.
The Aussie pair’s pullback, however, is likely to struggle around a one-month-long descending support line near 0.6695. The short-term downside also takes clues from the downward sloping but not oversold RSI (14).
In a case where AUD/USD bears keep reins past 0.6695, a fortnight-long support line near 0.6680 and the August 2019 low near 0.6670 will gain the market’s attention.
Alternatively, recovery remains elusive until the quote stays below the 0.6765 level comprising the weekly resistance line.
Even so, a two-week-long descending resistance line around 0.6830 could challenge the pair’s recovery. Also acting as an upside filter is the 100-SMA hurdle surrounding 0.6840.
Should AUD/USD bulls manage to cross the 0.6840, the 0.6900 threshold may act as the last defense of the bears before directing the quote towards the late June swing high surrounding 0.7070.
Overall, AUD/USD is likely to decline further but the downside room appears limited.
AUD/USD: Four-hour chart
Trend: Bearish