- The recent recovery move fails to find acceptance above 100-day SMA.
- Seems to have formed a bearish double-top near the 0.6880-90 region.
The AUD/USD pair continued with its struggle to find acceptance/build on the momentum beyond 100-day SMA and for now, seems to have stalled its recent goodish recovery move from multi-year lows.
Moreover, this week’s pullback from the 0.6880-90 congestion zone now seemed to have constituted towards the formation of a bearish double-top pattern on daily charts, suggesting further downside.
The bearish formation, however, will be confirmed on a sustained break below horizontal support near the 0.6800 handle, which coincides with 38.2% Fibonacci level of the 0.6671-0.6883 positive move.
Meanwhile, oscillators on the daily chart have been losing positive momentum, though have managed to hold in the bullish territory and warrant some caution before placing aggressive bearish bets.
Hence, it will be prudent to wait for a sustained breakthrough the mentioned support, below which the pair seems all set to accelerate the slide towards 61.8% Fibo. level support near mid-0.6700s.
On the flip side, 0.6855 region (100-DMA) now becomes immediate strong resistance and is followed by the 0.6880-90 supply zone, which if cleared might negate any near-term bearish outlook.
Sustained strength beyond the 0.6900 handle might prompt some near-term short-covering rally towards the key 0.70 psychological mark with some intermediate resistance near the 0.6930 region.
AUD/USD daily chart
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