- AUD/USD takes a U-turn from intraday high as the key SMA probes recovery.
- Failure to cross key hurdles, downbeat oscillators favor sellers.
- Bears eye late November swing low, 50% Fibonacci retracement level.
- One-month-old previous support line adds to the upside filters.
AUD/USD takes offers to refresh the intraday low near 0.6655 during early Wednesday morning in Europe.
The Aussie pair’s failure to extend the corrective bounce off 38.2% Fibonacci retracement of November-December upside beyond the 200-SMA appears to favor the AUD/USD bears of late.
Adding strength to the bearish bias are the sluggish MACD signals and the RSI (14) that remains downbeat.
As a result, AUD/USD sellers are back to attacking the 38.2% Fibonacci retracement (Fibo.) level of 0.6655, a break of which could quickly direct bears toward the convergence of the 50% Fibo. level and the late November swing low, close to 0.6580.
It’s worth noting that the November 08 swing high near 0.6550 and the 61.8% Fibonacci retracement level, also known as the “Golden Ratio”, around 0.6510, could challenge the AUD/USD downside past 0.6580.
Alternatively, the 200-SMA hurdle surrounding the 0.6700 round figure guards the AUD/USD pair’s immediate recovery.
Following that, the support-turned-resistance line from November 21, close to 0.6740 at the latest, will act as the last defense of the AUD/USD pair sellers.
Overall, AUD/USD is up for a refreshing monthly low but the downside past 0.6580 has limited room towards the south.
AUD/USD: Four-hour chart
Trend: Further downside expected