The AUD/USD pair trims a part of its modest intraday gains and retreats to the lower end of the daily range during the first half of the European session. Spot prices, however, manage to hold above the 0.6800 mark, representing a technically significant 200-day Simple Moving Average (SMA), and remain at the mercy of the US Dollar price dynamics.
AUD/USD is down for a second consecutive day, trading not far above the monthly low. The daily chart shows that it bounced modestly from a mildly bearish 200 SMA. At the same time, the pair extended its slide below a now bearish 20 SMA, which favors a downward extension. Furthermore, technical indicators remain within negative levels and at multi-month lows, also suggesting lower lows in sight.
The 4-hour chart paints a bearish near-term picture. AUD/USD trades far below its moving averages, with the 20 SMA holding directionless around 0.6870 but the 100 SMA maintaining its downward slope above it. Technical indicators hold well into negative territory, with the Momentum heading lower and the Relative Strength Index (RSI) consolidating around 34, reflecting the absence of buying interest.
Support levels: 0.6795 0.6750 0.06710
Resistance levels: 0.6850 0.6900 0.6945
