- The pair failed to capitalize on the early attempted bounce.
- The stage seems set for a slide towards the 0.6800 handle.
After an initial uptick to levels beyond mid-0.6800s, the AUD/USD pair came under some renewed selling pressure and drifted into the negative territory for the fourth consecutive session.
The intraday downfall has now dragged the pair to 2-1/2 week lows and below a support marked by the 38.2% Fibonacci level of the 0.6671-0.6930 recent recovery move from multi-year lows.
The pair’s inability to capitalize on its attempted move back above 100-day SMA, coupled with bearish oscillators on daily/hourly charts support prospects for an extension of the ongoing downfall.
Hence, some follow-through weakness, possibly towards challenging the 0.6800 round-figure mark (50% Fibo.), now looks a distinct possibility amid persistent US-China trade uncertainty.
Weakness below the mentioned handle could get extended further towards 61.8% Fibo. level, around the 0.6770 region, which if broken will pave the way for a further near-term depreciating move.
On the flip side, any attempted recovery beyond 100-DMA now seems to confront resistance near 23.6% Fibo. – around the 0.6865 region – ahead of the 0.6900 handle and the 0.6930 supply zone.
AUD/USD daily chart
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