AUD/USD technical analysis: Falls back to 0.6750 after rejection at former support-turned hurdle

• AUD/USD is looking south, having faced rejection at key resistance.  
• Aussie  job vacancies dropped 1.3% in the August quarter.  

AUD/USD is currently trading largely unchanged on the day around 0.6750, having faced rejection at the former support-turned-resistance at 0.6760 (Sept. 20 low).  

The pair closed below 0.6760 on Wednesday, establishing a lower low and confirming a lower high at 0.6806 (Sept. 24 high).  

The daily MACD histogram is already biased bearish. The 14-day relative strength index is also hovering below 50, supporting the bearish view put forward by the lower high, lower low setup.  

Hence, the psychological support of 0.67 could be put to test in the next 24 hours or so. A violation there would expose Sept. 3’s low of 0.6687.  

The bearish case looks stronger if we take into account the dismal Aussie labor market data released soon before press time. The total  job vacancies in Australia fell 1.8% in the August quarter, according to Australian Bureau of Statistics (ABS).  

The decline in the job vacancies will only add to the pressure on the Reserve Bank of Australia to cut rates next week. The central bank is expected to cut rates by 25 basis points on Oct. 1.  

The bearish case would be invalidated if the pair rises above the Sept. 24 high of 0.6806.

Daily chart

Trend: Bearish

Technical levels