- AUD/USD bounces off intraday lows to lick its wounds during a three-day losing streak.
- It successfully broke the 50-DMA, the uptrend line from two months ago, in favor of sellers.
- The recovery remains elusive below the resistance line and weekly highs of two weeks ago.
AUD/USD picks up bids from intraday lows to consolidate weekly lows near multi-day bottoms during Friday’s Asian session. Still, the Australian pair prints a modest loss of around 0.6865 by press time.
The market’s bearish bias is cued by the clear downside break of the 50-DMA the previous day. The break below the uptrend line from Dec 20, 2022 also supported the AUD/USD pair’s sellers.
Amidst these plays, the AUD/USD pair is all set to drop further towards the 200-DMA support near 0.6805.
However, the 0.6800 round number and upward sloping support line from mid-October 2022 (about 0.6770 at the time of writing) could challenge the pair’s bears thereafter.
Conversely, the support-to-resistance line from December and the 50-DMA will limit any immediate AUD/USD rebound around 0.6880-90.
That could be followed by a downhill resistance line from Feb 2 and weekly highs near 0.6980 and 0.7030, in that order, that could challenge the AUD/USD pair’s rally.
If the Australian currency pair remains strong above 0.7030, we cannot rule out the possibility of a rally towards its monthly peak of 0.7157.
AUD/USD: Daily Chart
Trend: Expect further declines