AUD/USD Price Analysis: Slips below 0.7100 inside monthly falling channel
- AUD/USD refreshes intraday low as sellers attack round figure within bearish chart pattern.
- Sellers stay hopeful as MACD teases bears, RSI retreats.
- Key SMAs, Fibonacci retracements add to the upside filters.
AUD/USD remains on the back foot around an intraday low of 0.7094, reversing early Asian gains ahead of Thursday’s European session.
In doing so, the Aussie stays within a one-month-old descending trend channel bearish formation. Also adding strength to the downside bias is the MACD line’s recent bear cross and the RSI retreat.
However, the lower line of the stated channel and the yearly low flashed at the end of November, around 0.7060, becomes a tough nut to crack for the AUD/USD sellers.
During the quote weakness past 0.7060, the 0.7000-6990 region comprising multiple levels marked since June 2020 will be the key to watch.
On the flip side, 50-SMA and 23.6% Fibonacci retracement (Fibo.) of late October to November downside, around 0.7175-80, challenge short-term buyers.
Even if the AUD/USD prices rally beyond 0.7180, the stated channel’s resistance line near 0.7190 and the 0.7200 threshold can challenge the bulls before directing them to 200-SMA and 61.8% Fibo., close to 0.7355 and 0.7370 in that order.
AUD/USD: Four-hour chart
Trend: Further weakness expected