- AUD/USD extend the downside break of a near-term key support, now resistance.
- 200-day SMA stays on the bears’ radar during the further fall.
- Buyers will look for a clear break above mid-January tops for fresh entry.
AUD/USD drops to 0.6810, intraday low of 0.6803, during the pre-European session on Monday. The pair prints 0.80% loss while trading below an ascending trend line from March 19.
With the sustained trading beneath near-term key support, coupled with RSI declining from the overbought territory, the quote is likely to extend the latest fall.
In doing so, a 200-day SMA level of 0.6665 will be an important support to watch as a break of which could recall April 30 top of 0.6570 on the charts.
Meanwhile, an upside clearance of the mid-January high near 0.6930 becomes necessary for the bulls to enter while targeting 0.7000.
Though, the pair’s ability to remain strong above 0.7000 will not only enable it to challenge the yearly top of 0.7065 but could also help it probe July 2019 peak surrounding 0.7083.
AUD/USD daily chart
Trend: Bearish
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