- AUD/USD fades bounce off two-week low, sidelined of late.
- Convergence of 10-DMA, previous support line restricts short-term upside.
- Monthly horizontal area on intraday seller’s radar, bulls remain away below 0.7300.
AUD/USD struggles to defend 0.7100 threshold, retreating to 0.7110 amid early Tuesday morning in Europe. In doing so, the Aussie pair fails to extend the previous day’s corrective pullback from a fortnight low while staying below a short-term support confluence.
A clear downside break of the two-week-old support line, now resistance around 0.7150, joins a steady RSI line to keep AUD/USD sellers hopeful.
That said, short-term bears eye monthly horizontal support near 0.7060-55 before challenging the yearly bottom surrounding 0.6995.
In a case where the AUD/USD drops further below 0.6995, the 61.8% Fibonacci Expansion (FE) of early November to December 16 moves, around 0.6925 will be in focus.
On the contrary, corrective pullback needs validation from the 10-DMA level surrounding 0.7150 to challenge the monthly peak of 0.7225.
However, a convergence of the 100-DMA and 50-DMA close to 0.7300 will be the key afterward.
AUD/USD: Daily chart
Trend: Further weakness expected