AUD/USD Price Analysis: Bears challenge 3-month old ascending channel support

• AUD/USD slips to session lows, around mid-0.6900s amid a modest USD uptick.
• The technical set-up warrants some caution before placing fresh directional bets.

The USD buying picked up some pace during the early North American session and pushed the AUD/USD pair to fresh daily lows, around mid-0.6800s in the last hour.

The mentioned level coincides with a support marked by the lower end of a three-month-old ascending trend-channel, which if broken might be seen as a fresh trigger for bearish traders. Meanwhile, technical indicators on hourly charts support prospects for an eventual breakdown.

However, oscillators on the daily chart – though have been losing momentum – are yet to confirm the near-term bearish bias. This, in turn, makes it prudent to wait for a convincing breakthrough the mentioned support before traders start positioning for any further depreciating move.

The pair might then accelerate the fall towards weekly lows, around the 0.6810 region. The downward trajectory could further get extended and drag the pair further below the 0.6700 mark en-route the next major support, representing the very important 200-day SMA, around the 0.6665 region.

On the flip side, the 0.6900 mark now seems to have emerged as immediate strong resistance. This is closely followed by the 0.6925-30 hurdle, above which the pair might aim to retest the 0.6975 supply zone. Some follow-through buying might assist the pair to reclaim the 0.7000 psychological mark.

AUD/USD daily chart

Technical levels to watch