- AUD/USD bounces off intraday low to lick its wounds during three-day losing streak.
- Successful break of 50-DMA, two-month-old ascending trend line favor sellers.
- Recovery remains elusive below two-week-old resistance line and weekly top.
AUD/USD picks up bids from the intraday low as it consolidates the weekly low around a multi-day bottom during Friday’s Asian session. Even so, the Aussie pair prints mild losses around 0.6865 by the press time.
The quote’s bearish bias takes clues from the previous day’s clear downside break of the 50-DMA, the first since early November. Also favoring the AUD/USD pair sellers was the quote’s decline below the ascending trend line from December 20, 2022. Furthermore, bearish MACD signals are additional catalysts favoring the Aussie pair’s extra fall.
Amid these plays, the AUD/USD pair is all set to drop further toward the 200-DMA support surrounding 0.6805.
However, the 0.6800 round figure and an upward-sloping support line from mid-October 2022, around 0.6770 by the press time, could challenge the pair bears afterward.
On the flip side, the support-turned-resistance line from December and the 50-DMA restrict immediate AUD/USD rebound near 0.6880-90.
Following that, a downward-sloping resistance line from February 02 and the weekly high, around 0.6980 and 0.7030 in that order, could challenge the AUD/USD pair’s run-up.
In a case where the Aussie pair remains firmer past 0.7030, the odds of witnessing a rally toward the monthly peak of 0.7157 can’t be ruled out.
AUD/USD: Daily chart
Trend: Further downside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
