- AUD/USD continues to trade lower as bears dominate trade.
- More downside risk envisioned if price decisively breaks 0.7550.
- Oversold MACD throws caution on aggressive directional bets.
AUD/USD prints losses for the second straight day on Tuesday in the early European trading hours. The pair made an intraday high of 0.7571 but failed to preserve the upside momentum.
At the time of writing, AUD/USD is trading at 0.7558, down 0.16% for the day.
AUD/USD daily chart
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On the daily chart, the pair has been trading in a broader range of 0.7610 and 0.7800, before breaking the range on June 17.
The price action below the session’s low at 0.7578 could open the fresh round of selling in the pair.
The first target which the bears would capture would be the low of June 23 in the vicinity of the 0.7535 area.
The oversold Moving Average Convergence Divergence (MACD) indicator makes bears hopeful for further downside toward the 0.7500 horizontal support level.
Next, market participants would aim for June 18 low at 0.7477.
Alternatively, any uptick in the MACD could make sharp upside movement due to overstretched selling conditions. AUD/USD bulls would attempt to reach the high of June 24 at 0.7593.
A daily close above 0.7600 key psychological mark could reverse downside price movement.
In doing so, the AUD/USD pair would reach out at June 17 high at 0.7646 followed by the 0.7700 horizontal resistance level.