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  • AUD/USD retreats sharply from 61.8% Fibo. and dropped to near one-week lows.
  • Bears might now be eyeing a move towards the 0.6215 resistance turned support.

The AUD/USD pair stalled its recent strong positive momentum to five-week tops and witnessed a dramatic turnaround from 61.8% Fibonacci level of the 0.7044-0.5509 plunge.

The steep intraday slide of over 150 pips dragged the pair to near one-week lows, with bulls now looking to extend the downfall further below the 0.6300 round-figure mark and 50% Fibo.

Below the mentioned support, around the 0.6280-75 region, the pair is likely to accelerate the fall further towards a previous strong resistance, now turned support, near the 0.6215-10 region.

This coincides with a 3-1/2 week old ascending trend-line support, which should now act as a key pivotal point for short-term traders and help determine the pair’s next leg of a directional move.

Meanwhile, technical indicators on the daily chart – though have been correcting – are still holding in the bullish territory and support prospects for the emergence of some dip-buying.

Hence, it will be prudent to wait for a sustained break through the same confluence support before confirming that the pair might have topped out and placing any aggressive bearish bets.

On the flip side, any attempted recovery might now confront some fresh supply and seems more likely to remain capped near 50-day SMA, currently near the 0.6365 region.

AUD/USD daily chart

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Technical levels to watch