AUD/USD Price Analysis: 21-DMA probes rebound from fortnight low around 0.7100
- AUD/USD picks up bids to consolidate the biggest daily fall in a month.
- Sustained break of 21-DMA, downbeat RSI, MACD signals keep sellers hopeful.
- 200-DMA appears a tough nut to crack for buyers.
AUD/USD licks its wounds around the lowest levels in two weeks, picking bids to pierce 0.7100 during early Friday morning in Europe.
Even so, the Aussie pair’s successful downside break of the 21-DMA, the first in three weeks, joins the sluggish RSI and MACD’s impending bear cross to favor sellers until the quote stays below the 21-DMA hurdle of 0.7115.
That said, the pair’s recovery past 0.7115 won’t be an open invitation to the AUD/USD bulls as a convergence of the 200-DMA and a 50% Fibonacci retracement of April-May fall, around 0.7245-50, appears strong resistance to challenge the further upside.
Alternatively, fresh downside moves can aim for early May’s swing low near 0.7030 ahead of challenging the 0.7000 round figure.
Following that, a one-month-old horizontal area surrounding 0.6950 will be crucial to watch for the AUD/USD bears.
Overall, AUD/USD prices are likely to witness further downside despite the latest attempts to recover the weekly loss, the first in four weeks.
AUD/USD: Daily chart
Trend: Further weakness expected