AUD/USD Price Analysis: Daily closing below 0.6690 appears necessary for bears
- AUD/USD pokes short-term key support confluence as it braces for the biggest daily loss in a week.
- Convergence of 100-DMA, three-week-old ascending trend line probes sellers.
- MACD, RSI conditions tease sellers to aim for a two-month-long horizontal support zone.
AUD/USD bears jostle with short-term key support surrounding 0.6690 as bears try to retake control during early Monday morning in Europe. In doing so, the Aussie pair justifies the market’s risk-off mood as it prepares for the biggest daily fall in a week.
That said, a joint of the 100-Day Moving Average (DMA) and an upward-sloping trend line from November 04, close to 0.6690, appears a tough nut to crack for the AUD/USD pair bears.
It’s worth noting that the impending bear cross on the MACD and the RSI (14) retreat keeps sellers hopeful of breaking the 0.6690 support.
Following that, a south-run towards a broad support region between 0.6550 and 0.6525, comprising multiple levels marked since late September, will gain the market’s attention.
In a case where AUD/USD remains weak past 0.6525, the odds of witnessing a south-run toward the yearly low of 0.6170 can’t be ruled out.
Alternatively, a descending trend line from September 13, close to 0.6775 by the press time, holds the key to AUD/USD buyer’s conviction.
Should the Aussie pair remains firmer past 0.6775, it can quickly refresh the monthly high, currently around 0.6800, by targeting September’s top surrounding 0.6915.
AUD/USD: Daily chart
Trend: Further weakness expected