- AUD/USD locks in substantial losses in the early European session.
- Double support near 0.7310 offers hope to the bulls, downside risk persists.
- Oversold MACD implies a wait-and-watch approach before placing aggressive bids.
AUD/USD continues to trade lower following the previous week sluggish momentum in the European trading hours. After testing the high just below 0.7350, the pair fall freely toward the session’s low.
At the time of writing, AUD/USD is trading at 0.7309, down 0.38% for the day.
AUD/USD daily chart
-637647697702577158.png)
On the daily chart, the pair has been under consolidating in a broader trading range of 0.7320 and 0.7420 for the past month, thus forming a rectangle channel. AUD/USD bears break the mentioned training range and continued to drag the pair lower.
A sustained move below intraday’s low could bring back levels last seen in November 2020 back in the picture. The first in line target would be the July 21 low of 0.7288.
AUD/USD weekly chart
-637647696821997836.png)
The Moving Average Convergence Divergence (MACD) indicator reads in the oversold zone. Any downtick in the MACD would open the gates for the levels last seen in November 2020.
Bears would head towards the weekly low of November 27, 2020, at 0.7264 followed by the 0.7210 horizontal support level.
Alternatively, if price moves higher then it could test the 0.7350 and the 0.7390 horizontal resistance levels.
Next, the market participants would aim for the July 16 high of 0.7417.