- AUD/USD bears attack 100-SMA during three-day downtrend, sidelined of late.
- Clear downside break of fortnight-old rising trend line, bearish MACD favor sellers.
- Fresh monthly high becomes necessary for bulls to retake controls.
Having conquered a two-week-old rising trend line the previous day, AUD/USD holds lower ground near 0.7120 during the three-day declines heading into Monday’s European session.
In doing so, the Aussie pair seesaws around the 100-SMA. However, bearish MACD signals and the quote’s U-turn from 0.7250, portrayed on Friday, keep Aussie sellers hopeful.
Hence, a clear downside break of 0.7115 becomes necessary for AUD/USD bears to extend the latest declines towards the 0.7100 threshold.
Following that, the 23.6% Fibonacci retracement (Fibo.) of January’s declines, near 0.7050, will precede the 0.700 psychological magnet to test the AUD/USD bears, not to forget the yearly bottom surrounding 0.6965.
Alternatively, the support-turned-resistance line near 0.7155 and the 200-SMA level of 0.7170 restrict short-term upside moves of the AUD/USD pair.
It should be noted, however, that the AUD/USD bulls remain cautious until the quote refreshes monthly high, currently around 0.7250.
AUD/USD: Four-hour chart
Trend; Further weakness expected