- Failure to find support near 100-hour SMA triggers some aggressive intraday technical selling.
- A follow-through selling will set the stage for an extension of the recent downward trajectory.
The AUD/USD pair continued losing ground through the mid-European session on Wednesday and refreshed weekly lows, around the 0.6760-65 region in the last hour. A sustained weakness back below 100-hour SMA might have prompted some aggressive technical selling and fueled the pair’s sharp intraday slide.
The intraday downfall has now dragged the pair back towards a previous congestion zone – coinciding with 61.8% Fibo. level of the 0.6688-0.6895 recent recovery move. A follow-through selling might now be seen as a key trigger for bearish traders and set the stage for the resumption of the prior/well-established bearish trend.
Below the said region the pair might turn vulnerable to accelerate the depreciating move further towards challenging the 0.6700 round-figure mark en-route multi-year lows support, near the 0.6677 region. On the flip side, any attempted recovery might continue to confront some fresh supply and remain capped near the 0.6800 handle.
Only a decisive breakthrough the mentioned hurdle might negate the near-term bearish outlook and prompt some aggressive short-covering move, back towards the 0.6865 horizontal resistance en-route 100-day SMA barrier, just ahead of the 0.6900 round-figure mark.
AUD/USD 1-hourly chart
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