AUD/USD Price Analysis: Renews 23-month low with eyes on 0.6815

  • AUD/USD takes offers to refresh multi-month low, neglects Thursday’s Doji, oversold RSI.
  • A clear break of yearly support, bearish MACD signals direct sellers towards descending trend line from August 2021.
  • Monthly resistance, key DMAs challenge buyers, support-turned-resistance line offers the trigger for the rebound.

AUD/USD skids to the lowest levels since June 2020, taking offers around 0.6880 heading into Thursday’s European session.

The Aussie pair portrayed a Doji candlestick the previous day and raised hopes of witnessing recovery amid an oversold RSI (14) line. However, yuan selling, risk-off mood and downbeat Aussie inflation expectations together weigh on the AUD/USD prices of late.

That said, a downward sloping trend line from August 2021, near 0.6815 by the press time, lures AUD/USD sellers.

Following that, the 0.6800 threshold and the mid-June 2020 swing low surrounding 0.6775 could entertain the bears.

Meanwhile, corrective pullback remains elusive until staying below the yearly horizontal resistance, the previous support around 0.6980-85.

Following that, a descending trend line from early April could test the AUD/USD buyers around 0.7190.

In a case where AUD/USD rises past 0.7190, the 100-DMA and the 200-DMA, respectively near .7250 and 0.7275, should gain the bull’s attention.

AUD/USD: Daily chart

Trend: Further weakness expected