- The ongoing downfall finds some support near the 0.6780 congestion zone.
- The near-term set-up might be gradually shifting in favour of bearish traders.
The AUD/USD pair extended this week’s rejection slide from just ahead of the 0.6900 round-figure mark and remained under some heavy selling pressure for the second consecutive day on Thursday.
The intraday downfall dragged the pair to over two-week lows, albeit now seems to have found some support near the 0.6780-75 region – marking the 61.8% Fibo. level of the 0.7082-0.6677 downfall.
The mentioned region coincides with a previous congestion zone and should now act as a key pivotal point for short-term traders, which if broken might negate prospects for any near-term recovery.
Meanwhile, technical indicators on hourly charts have been recovering within the bearish territory but have just started gaining negative traction on the daily charts, pointing to further weakness.
However, it will be prudent to wait for a sustained breakthrough the mentioned support zone before positioning for a fall towards the 0.6700 handle en-route multi-year lows, near the 0.6677 region.
On the flip side, any meaningful recovery move might now confront some fresh supply and seems more likely to remain capped near the 38.2% Fibo. level support breakpoint – around the 0.6830 region.
AUD/USD daily chart