- AUD/USD refreshes intraday low after declining for the last three days.
- Pullback from four-month-old resistance line precedes break of ascending trend line from late August and 50-DMA to favor bears.
- July low lures short-term sellers, bulls need validation from monthly peak.
AUD/USD takes offers around 0.7355, down 0.16% intraday during early Thursday.
In doing so, the quote drops back below 50-DMA after a brief upside break amid the last week that couldn’t cross a descending trend line resistance line from early May. The pullback move also gained acceptance on breaking a three-week-old support line.
Given the firmer Momentum line backing the sellers, coupled with the break of the key technical supports, AUD/USD prices are likely to remain pressured towards the July month’s low near 0.7288. However, the 0.7300 threshold may offer an intermediate halt during the fall.
In a case where the pair sellers keep reins past 0.7288, 0.7230 and 0.7150 may challenge them ahead of directing to the yearly low of 0.7105.
On the flip side, 50-DMA and the support-turned-resistance line, respectively near 0.7365 and 0.7420, guard the quote’s short-term recovery ahead of a bit broader resistance line near 0.7460.
If at all the AUD/USD bulls cross the 0.7460 hurdle, they need to stay beyond the monthly high near 0.7480 to keep buyers hopeful to meet the 0.7600 mark, surrounding 61.8% Fibonacci retracement of May–August downside.
AUD/USD: Daily chart
Trend: Further weakness expected