- AUD/USD remained under some heavy selling pressure for the second straight session on Thursday.
- The set-up remains firmly in favour of bearish trades and supports prospects for a further downfall.
- Attempted recovery move is likely to confront stiff resistance near the 0.7650 support breakpoint.
The AUD/USD pair added to the previous day’s losses and witnessed some heavy selling for the second consecutive session on Thursday. The downward trajectory dragged the pair to fresh one-month lows during the first half of the European session, with bears now looking to extend the momentum further below the 0.7600 mark.
From a technical perspective, the AUD/USD pair on Wednesday decisively broke through a short-term ascending trend-line support extending from early November. A subsequent slide below the 23.6% Fibonacci level of the 0.6990-0.7820 strong positive move might have already set the stage for additional near-term weakness.
The bearish outlook is further reinforced by the fact that technical indicators on the daily chart have just started driving into the negative territory. Some follow-through selling below 50-day SMA support, around the 0.7585 region, will reaffirm the bearish bias and turn the AUD/USD pair vulnerable to slide further.
The downward trajectory might then drag the AUD/USD pair towards the key 0.7500 psychological mark. The mentioned level coincides with the 38.2% Fibo. level, which if broken decisively will be seen as a fresh trigger for bearish traders. This, in turn, would pave the way for an extension of the ongoing corrective slide.
On the flip side, any attempted recovery runs the risk of fizzling out rather quickly near the 0.7650 horizontal support breakpoint. This, in turn, should now act as a strong barrier, which if cleared decisively might trigger some short-covering move and push the AUD/USD pair back towards the 0.7700 round-figure mark.
AUD/USD daily chart
Technical levels to watch
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