“¢ The pair stalled its recent bearish trajectory and managed to find some support near the lower end of a short-term descending trend-channel formation on hourly charts.
“¢ The mentioned trend-channel, extending from last week’s post-RBA swing high, points to a well-established bearish trend amid escalating US-China trade tensions.
However, technical indicators on hourly/daily charts were on the verge of slipping into the oversold territory and seemed to be the only factor holding investors from placing any fresh bearish bets rather prompting some short-covering move.
Given the formation of a bearish trend-channel and the fact that the pair remains well below its important daily/intraday moving averages – 50, 100 & 200-period SMAs, suggests that the near-term selling bias might still be far from over.
Hence, any attempted recovery towards the 0.6975-80 region might still be seen as an opportunity to initiate some fresh bearish positions and seems more likely to remain capped below the key 0.70 psychological mark, at least for the time being.
AUD/USD 1-hourly chart
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