AUDUSD held losses over the last five days, dropping to a new four-month low of 0.6864 last Friday and penetrating the descending triangle formation to the downside.
The RSI in the 4-hour chart continues to lack direction near the oversold area, while the red Tenkan-sen keeps flattening below the blue Kijun-sen line, reducing chances for a meaningful recovery in the short-term trading. The MACD oscillator is strengthening its negative momentum below the trigger and zero lines.
If the price closes comfortably below the 0.6864 support, traders could add more pressure to the pair, pushing the market down to 0.6825. The ten-year low of 0.6746 has been strictly supportive and therefore should be in focus.
In the positive scenario, the price could return higher and touch the 0.6960 resistance level, before hitting the 20-day simple moving average (SMA). If this proves easy to overcome this time, the increase may next pause somewhere between the 40-SMA currently at 0.7045 and the 23.6% Fibonacci retracement level of the downleg from 0.8135 to 0.6746, near 0.7070.
Briefly, AUDUSD is in a strongly bearish mode in the short- and medium-terms.
Origin: XM
