AUD/USD Price Analysis: Depressed near key support line above 0.6700
- AUD/USD fades bounce off two-year low, retreats from daily high.
- Descending trend line from January restricts immediate declines inside monthly falling wedge.
- 21-DMA adds strength to the upside hurdle, August 2019 low acts as additional support.
AUD/USD struggles to extend the previous day’s corrective pullback from a two-year low as it eases to 0.6743 during Friday’s Asian session.
In doing so, the Aussie pair keeps its weekly trading pattern of taking rounds to a downward sloping support line from January 2022 despite marking volatile sessions and refreshing multi-day lows of late.
It’s worth noting that the RSI (14) remains mostly stable, above the oversold territory, which in turn allows the bears to keep reins despite recent indecision.
That said, the quote’s fresh weakness needs a sustained closing below the stated support line, near 0.6740 by the press time.
Following that, the lower line of the one-month-old falling wedge bullish chart formation, close to 0.6690 at the latest, will be crucial to watch for the AUD/USD bears, a break of which could direct the quote towards the August 2019 low near 0.6670.
Alternatively, recovery moves could aim for the 0.6800 threshold before challenging the 0.6855 resistance confluence including the 21-DMA and the aforementioned wedge’s upper line.
If at all the AUD/USD trades successfully beyond 0.6855, the odds of witnessing a run-up towards June’s peak of 0.7283 can’t be ruled out.
AUD/USD: Daily chart
Trend: Further downside expected