- AUD/USD finds bids below 0.67 for the second time this month.
- A corrective bounce to the 10-day MA could be seen during the day ahead.
AUD/USD is currently trading at 0.6730, having hit a low of 0.6689 earlier today.
This is the second time that the pair has quickly recovered from sub-0.67 level. The pair had dropped to a low of 0.6677 on Aug. 7 only to end that day largely unchanged on the day at 0.6756.
The long tails attached to Aug. 7’s and today’s candle indicate seller exhaustion, so, rise to the 10-day moving average (MA) of 0.6765 could be seen during the day ahead, especially if the futures on the S&P 500 continue to recover losses. The futures are currently trading at 2,833, having hit a low of 2,811.5 in the early Asian session.
The outlook would turn bullish only if and when the spot invalidates the bearish lower highs pattern with a move above the Aug. 8 high of 0.6822.
On the downside, a close below 0.67 would bolster the bearish case.
Daily chart
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Trend: Seller exhaustion
Pivot points
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