- reaches its lowest level since mid-November
- Although the decline stops, the recovery does not look convincing
- Momentum indicators remain tilted lower
AUDUSD has been on a steady decline after peaking at 0.6870 in December, breaking below its 50-day and 200-day simple moving averages (SMA). This week, the price fell to a new two-month low of 0.6467 before recovering some losses, while short-term oscillators still suggest that bearish forces are taking advantage.
If bearish pressures persist, the price could re-reach its 2024 low of 0.6467. A breach of that region could open the door to the August low of 0.6363. Slipping below that floor, the pair may decline towards the November low of 0.6337.
On the other hand, if the pair extends its recovery in the short term, there will be no notable resistance until the 200-day SMA, currently at 0.6568. Further advances at the recent resistance at 0.6623 could then cease before the hurdle at 0.6689. Once the latter is conquered, the bulls could attack the May high of 0.6817.
Overall, AUDUSD fell to its lowest level in two months as its short-term pullback shows no signs of easing. For the bearish sentiment to change, the price must initially reclaim the 200-day SMA.