AUD/USD remains on the back foot as it renews its intraday low near 0.6665, reversing the early-week rebound, as bears return to the table on Tuesday.

In doing so, the Aussie pair cheers the previous week’s downside break of a one-week-old ascending trend line, now resistance around 0.6725. The downside bias also takes clues from the bearish MACD signals and the steady RSI.

That said, the 100-DMA level surrounding 0.6660 challenges the AUD/USD bears by the press time, a break of which could quickly direct it to the November lows near 0.6580.

Should the AUD/USD bears keep the reins past 0.6580, October’s top near 0.6550 will be in focus.

On the flip side, a daily closing beyond the previous support line near 0.6725 becomes necessary for the AUD/USD buyers to retake control.

Even so, a downward-sloping resistance line from early June, close to 0.6870 by the press time, appears a tough nut to crack for the bulls.

It should be observed that the monthly high near 0.6895 and the 0.6900 round figure can act as extra upside filters before directing AUD/USD towards August month’s high near 0.7135.

The neckline of AUD/USD M-formation is still expected to serve as a resistance area of a restest in the coming days and that could lead to a downside continuation below the now counter-trendline to target the 0.65s.

The M-formation is still in the making. A bottom has not been confirmed yet as we are yet to see a daily first green day close that would signal the deceleration of the bearish impulse and prospects of a bullish correction of the same.

However, the upper quarter of the 0.66s is giving some support AUD and it could be time to start monitoring for a first green day close and planning the playbook on the lower time frames for a short squeeze set-up.

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