Bears march towards weekly support near 0.6875

  • AUD/USD remains depressed around intraday low, extending the previous week’s pullback towards monthly low.
  • One-week-old trend line may offer intermediate support but the 0.6855 level is crucial for bears to watch.
  • Convergence of 50-SMA, two-week-old resistance line challenge buyers.

AUD/USD holds lower ground near 0.6890 heading into Thursday’s European session. In doing so, the Aussie pair stretches the previous day’s losses towards the one-week-old support line amid bearish MACD signals.

It’s worth noting, however, that an upward sloping trend line from May 12, near 0.6855, appears a tough nut to crack for the AUD/USD sellers.

Should the quote drop below 0.6855, the yearly low marked in May, around 0.6830, will quickly return to the charts.

Following that, the 61.8% Fibonacci Expansion (FE) level of June 03-16 moves, near the 0.6800 round figure, will challenge the AUD/USD bears.

Meanwhile, the 50-SMA and a fortnight-long resistance line together restrict the Aussie pair’s short-term recovery around 0.6950-55.

In a case where AUD/USD rises past 0.6955, the odds of witnessing an upswing towards the mid-month peak surrounding 0.7070 can’t be ruled out. During the run-up, the 0.7000 threshold may offer an intermediate halt to the bulls.

Overall, AUD/USD bears a short-term key supports attack but a lack of downside room might challenge the pair’s further declines.

AUD/USD: four-hour chart

Trend: Further downside expected


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