The Aussie Pair (AUD/USD) Is Expected Downside Movement
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- AUDUSD licks its wounds after a downbeat start to the week.
- Oscillators suggest further downside, weekly resistance line challenge buyers.
- Fortnight-old horizontal support region restrict short-term AUDUSD downside.
- Buyers need validation from October’s peak to retake control.
AUDUSD remains defensive around 0.6430 after reversing from the 200-HMA support heading into Monday’s European session.
Even so, the Aussie pair remains below a weekly resistance line amid bearish MACD and RSI signals.
As a result, the quote is likely to witness further downside, which in turn highlights the 200-HMA support near 0.6410.
Following that, the 50% and 61.8% Fibonacci retracement levels of the AUDUSD pair’s October 21-27 advances, respectively near 0.6370 and 0.6330, could probe the downside moves.
In a case where the AUDUSD prices remain weak past 0.6330, a two-week-old horizontal support zone near 0.6270 will be crucial for sellers to watch as a downside break of the same could probe the yearly low surrounding 0.6170.
Meanwhile, recovery moves need a successful break of the aforementioned weekly resistance line, close to 0.6475 at the latest.
Even if the AUDUSD price remains firmer past 0.6475, the pair buyers may wait for a clear upside break of the previous monthly top surrounding 0.6550 to please the buyers.
That said, the 0.6500 round figure may offer an intermediate halt during the run-up.
AUDUSD: Hourly chart
Trend: Further downside expected
