- AUD/USD comes under some heavy selling pressure on Tuesday.
- The set-up might have already shifted in favour of bearish traders.
The AUD/USD pair extended the overnight rejection slide from the 0.6900 handle and witnessed some aggressive selling on Tuesday in reaction to dovish sounding RBA meeting minutes.
The pair tumbled to near one-week lows, albeit now seems to have found some support near 50% Fibonacci level of the 0.6754-0.6939 recent positive move from early November swing lows.
This is closely followed by 200-period SMA, around the 0.6835 region, and 61.8% Fibo. level, which if broken might be seen as a key trigger for bearish traders and open room for further declines.
Meanwhile, technical indicators on hourly charts maintained their bearish bias and have also lost positive traction on the daily chart, reinforcing the near-term bearish set-up for the major.
Hence, some follow-through selling below the mentioned support levels might prompt some aggressive technical selling and accelerate the slide further towards challenging the 0.6800 handle.
On the flip side, any recovery might now confront fresh supply near the 0.6865-70 region (38.2% Fibo.), above which bulls are likely to make a fresh attempt towards reclaiming the 0.6900 handle.
AUD/USD 4-hourly chart
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