- AUD/USD remains depressed for the second consecutive session on Wednesday.
- The near-term technical set-up might have already shifted back in favour of bears.
The AUD/USD pair extended the previous day’s retracement slide from two-week tops – levels beyond the 0.6200 mark – and edged lower for the second consecutive session on Wednesday.
The downward momentum dragged the pair below an important confluence support, around the 0.6100 mark, which comprised of a near two-week-old ascending trend-line and 100-hour SMA.
Given that technical indicators on the daily chart maintained their bearish bias and have again started gaining negative momentum on hourly charts, the set-up seems tilted in favour of bearish traders.
Hence, a subsequent fall, towards testing the 0.6025-20 intermediate support en-route the key 0.60 psychological mark, now looks a distinct possibility amid resurgent USD demand.
Some follow-through selling might turn the pair vulnerable to extend the downward trajectory further towards challenging its next horizontal support near mid-0.5900s.
On the flip side, any attempted recovery is likely to confront some fresh supply and remain capped near the mentioned confluence support breakpoint, now turned stiff resistance.
AUD/USD 1-hourly chart
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Technical levels to watch
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