- AUD/USD extended the previous day’s rejection slide from the 0.6400 neighbourhood.
- The near-term technical set-up supports prospects for a fall below the 0.6200 level.
The AUD/USD pair failed to capitalize on its attempted intraday bounce, instead met with some fresh supply near the 0.6325 region and dropped to multi-day lows in the last hour.
Currently hovering around the 0.6280 region, bearish traders are likely to wait for some follow-through selling below last week’s swing lows around near the 0.6265 region.
This is followed by a previous strong resistance break-point, near the 0.6225-20 region, which coincides with the 50% Fibonacci level of the 0.5509-0.6445 strong recovery move.
Given last week’s break below a one-month-old ascending trend-line support, the near-term bias remains tilted in favour of bears and support prospects for a further decline.
A convincing break below the mentioned support will reinforce the bearish outlook and turn the pair vulnerable to extend its rejection slide from the 61.8% Fibo. level.
The pair then seems all set to accelerate the slide below the 0.6200 round-figure mark, towards testing its next major support near the 0.6160-55 horizontal zone.
Meanwhile, oscillators on hourly charts have been gaining negative momentum and lost traction on the daily chart, adding credence to the bearish outlook.
Hence, any attempted recovery beyond the 0.6300 mark might still be seen as a selling opportunity and seemed more likely to remain capped near the 0.6355-60 supply zone.
AUD/USD 4-hourly chart