The AUD/USD pair attracts fresh sellers on Friday and extends the previous day's rejection slide from over a two-week peak, around the 0.6755-0.6760 region, which coincides with a technically significant 200-day Simple Moving Average (SMA). The intraday downfall drags spot prices to over a one-week low, around the 0.6635 area during the first half of the European session and is sponsored by resurgent US Dollar (USD) demand. As the quote’s latest rebound gains support from the bullish MACD signals, further upside towards the 200-DMA hurdle surrounding 0.6760 can’t be ruled out.

However, Thursday’s “Gravestone Doji” candlestick joins steady RSI (14) to challenge the AUD/USD buyers afterward.

In a case where the Aussie pair remains firmer past 0.6760, the December 2022 peak surrounding 0.6890, quickly followed by the 0.6900 threshold, could challenge the AUD/USD bulls before giving them control.

On the contrary, a downside break of the immediate fortnight-long support line, close to 0.6660 at the latest, isn’t an open invitation to the bears as multiple levels marked in the last four months around 0.6640-30, can challenge the sellers.

It’s worth noting that a downward-sloping previous resistance line from February 02, now support around 0.6575, acts as the last defense of the AUD/USD pair buyers, a break of which could drag the quote towards 2022 bottom surrounding 0.6160.

Risk sentiment remains fragile over lingering and spill over concerns to European banks. We had earlier cautioned that contagion/worries going outside of US could see risk proxies under pressure.

Overall, AUD/USD remains on the bear’s radar unless providing a clear upside break of 0.6900.

AUDUSD remains weak below DEMA200

Mar 24 2023

Take Profit +5.14%

Holding time 122d1hr

0.68058

Entry price

0.64560

Take profit price