- AUD/USD witnessed some heavy selling on Thursday and refreshed weekly lows.
- The intraday slide below 200-hour SMA was seen as a trigger for bearish traders.
- Subsequent fall below 0.7200 mark should pave the way for additional weakness.
The AUD/USD pair came under some renewed selling pressure on Thursday and refreshed weekly lows, around the 0.7255 region during the first half of the European trading session. Given the pair’s inability to capitalize on the overnight bounce, sustained weakness below 200-hour SMA support near the 0.7285 region was seen as a key trigger for bearish traders.
Meanwhile, technical indicators on the 4-hourly chart have just started drifting into the bearish territory and support prospects for an additional decline to the 0.7220 horizontal support. However, RSI on the 1-hourly chart is already flashing slightly oversold conditions. Adding to this, bullish oscillators on the daily chart warrants some caution for bearish traders.
That said, some follow-through selling below the 0.7200 round-figure mark will set the stage for an extension of this week’s retracement slide from the 0.7330 supply zone. The AUD/USD pair might then accelerate the downfall towards the 0.7160-55 region before eventually dropping to the next major support near the 0.7100 round-figure mark.
On the flip side, the 0.7285 region (200-hour SMA), followed by the 0.7300 mark might now act as immediate resistance levels. Any further move up is more likely to be seen as a selling opportunity and remain capped near the 0.7340 supply zone.
AUD/USD 1-hourly chart
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Technical levels to watch
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