AUD/USD Price Analysis: Off two-month-old support to regain 0.7300
- AUD/USD poised for second weekly drops, consolidates losses of late.
- Sustained downside break of key SMA, descending RSI line favor sellers.
- Bulls need to cross 50-DMA for entries, 0.7220 lures bears during fresh downside.
AUD/USD struggles to keep rebound from the short-term key horizontal support around 0.7300, up 0.10% intraday heading into Friday’s European session.
The quote dropped to the two-week low the previous day while contributing towards a second weekly loss.
However, a horizontal area comprising multiple levels marked since July remains unbroken on a daily closing and hence triggered the latest corrective pullback. Even so, AUD/USD prices remain below the key moving averages and the downward sloping RSI line hints at further weakness.
Hence, the pair sellers are waiting for a clear downside past 0.7280 before testing the August 27 low near 0.7220.
If the AUD/USD prices fail to recover from 0.7220, the yearly low surrounding 0.7100 should return to the chart.
Meanwhile, 20-DMA and 50-DMA, respectively near 0.7330 and 0.7345, restrict short-term AUD/USD upside.
Should the pair buyers remain dominant past 0.7345, the 0.7400 threshold and August month’s top near 0.7430 may challenge them ahead of directing to the monthly peak of 0.7478.
AUD/USD: Daily chart
Trend: Bearish