- AUD/USD extends Tuesday’s losses, keeps downside break of a support line stretched from November 02.
- RSI eases from higher range, backs further downside.
- 0.7340 becomes the key upside barrier, for now.
AUD/USD pulls back from the day’s low of 0.7271, to currently around 0.7286, during early Wednesday. Although 10-day SMA restricts the pair’s immediate downside, downward sloping RSI joins break of short-term support line, now resistance, to favor the sellers.
As a result, AUD/USD bears are waiting for clear declines past-10-day SMA, at 0.7278 now, for fresh entries. In doing so, the October high near 0.7245 and the 50-day SMA level of 0.7175 will become their targets.
It should, however, be noted that the 0.7200 round-figure may offer an intermediate halt between 0.7245 and 0.7175 supports.
Meanwhile, corrective pullback beyond the previous support, near 0.7295 now, will need to cross the 0.7300 round-figure to challenge the monthly high, flashed twice, of 0.7340.
In a case where the AUD/USD bulls manage to cross 0.7340, the mid-September high near 0.7345 can test the strength of upside momentum towards the 0.7400 threshold that holds the key to further north-run eyeing April high of 0.7415.
AUD/USD daily chart
Trend: Bearish
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