- AUD/USD remains confined in a range just above multi-week lows.
- Bearish technical set-up supports prospects for further weakness.
The AUD/USD pair consolidated the recent losses to three-week lows and seesawed between tepid gains/minor losses on Wednesday, around 200-period SMA on the 4-hourly chart.
The mentioned region also nears the 61.8% Fibonacci level of the 0.6763-0.7032 strong recovery move and should now act as a key pivotal point for the next leg of a directional move.
Meanwhile, technical indicators on the daily chart have just started gaining negative momentum and support prospects for an extension of the near-term depreciating move.
Some follow-through selling will reinforce the bearish outlook and set the stage for a slide towards the 0.6800 mark with some intermediate support near the 0.6830-25 region.
However, slightly oversold conditions on the 4-hourly chart seemed to be the only factor holding traders from placing fresh bearish bets and limiting the downside, at least for now.
The technical set-up seems tilted in favour of bearish traders and hence, any attempted recovery move towards the 0.6900 handle (50% Fibo.) might still be seen as a selling opportunity.
AUD/USD 4-hourly chart
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