The AUD/USD pair kicks off the new week on a weaker note and drops to a fresh low since January 6, though manages to recovery a few pips from sub-0.6700 levels. The pair is currently placed around the 0.6715-0.6720 region, down over 0.10% for the day, and remains at the mercy of the US Dollar price dynamics.

the Aussie pair rebounds from a convergence of the 100-DMA and an upward-sloping support line from late November 2022. The corrective move also justifies the nearly oversold RSI (14).

However, the recovery remains elusive unless providing a daily closing beyond the 200-DMA hurdle of 0.6800.

Following that, a downward-sloping resistance line from February 02, close to 0.6850 at the latest, acts as the last defense of the AUD/USD bears, a break of which could propel prices towards the 0.7000 round figure.

Should the Aussie pair buyers keep the reins past 0.7000, tops marked during the mid-February, as well as the monthly high, surrounding 0.7030 and 0.7160 in that order, could lure the upside momentum.

Meanwhile, a daily closing below 0.6730 could quickly drag AUD/USD toward a late December 2022 low near 0.6630. However, lows marked during November 21 and 11, around 0.6585 and 0.6575 could challenge the bears afterward.

Overall, AUD/USD is likely to witness further downside unless marking a sustained break of 0.6850.

Market participants now look forward to the US economic docket, featuring the release of Durable Goods Orders and Pending Home Sales data. This, along with the US bond yields, will influence the USD price dynamics and provide some impetus to the AUD/USD pair. Traders will further take cues from the broader risk sentiment to grab short-term opportunities around the major.

AUDUSD in a corrective mode after exhausting losses

Feb 27 2023