AUD/USD Price Analysis: Extends losses below 0.7200 on monthly support break
- AUD/USD refreshes two-week low, extends pullback from 100-DMA.
- Downbeat MACD signals, RSI line favor sellers eyeing 2021 bottom.
- Seven-week-old previous support acts as immediate hurdle, 0.7080 can offer nearby support.
AUD/USD takes offers to refresh daily low near 0.7165, down 0.15% intraday, as traders brace for Monday’s European session.
The pair’s latest declines could be linked to a downside break of the five-week-long support line, as well as bearish MACD signals and descending RSI line.
It’s worth noting that the Aussie pair took a U-turn from the 100-DMA, around 0.7275 at the latest, on Thursday and closed below an upward sloping trend line from early December to favor sellers at Friday’s closing.
That said, the quote’s latest declines eye the 0.7100 threshold and 0.7080 support levels ahead of directing AUD/USD sellers towards 2021 bottom surrounding 0.6990.
On the contrary, recovery moves may initially aim for the support-turned-resistance line from December 03, near 0.7195. Also acting as a nearby resistance is the 0.7200 round figure.
Should the quote rises past 0.7200, it becomes capable of challenging the 100-DMA level near 0.7275.
However, the previous support line from August and a descending trend line from May, respectively around 0.7350 and 0.7400, will challenge the further AUD/USD pair’s upside past the 100-DMA. It’s worth noting that the 200-DMA level near 0.7415 acts as an extra filter to the north.
AUD/USD: Daily chart
Trend: Further weakness expected