AUD/USD Price Analysis: Bears take a breather on the way to 0.7380
|- AUD/USD stays range-bound following the biggest daily slump in five months.
- Rising wedge confirmation, steady declines below 0.7460 support convergence keep sellers hopeful.
- Short-term horizontal support area, 200-SMA put a floor under the prices amid oversold RSI.
AUD/USD consolidates the RBA-led big slump within an 18-pip trading range, picking up bids near 0.7438 heading into the European session on Wednesday.
Although oversold RSI conditions probe the immediate downside of the Aussie pair, the bears remain hopeful of breaking the key technical supports the previous day.
After confirming a rising wedge bearish chart pattern on the RBA’s verdict to give up the bond yield targeting, the Aussie pair also slipped below a convergence of 100-SMA and an ascending trend line from September 29, around 0.7460.
That said, the quote remains on the bear’s radar until crossing the 0.7460 support-turned-resistance. Even so, the lower line of the wedge, around 0.7500 adds to the upside filters before recalling the AUD/USD buyers.
In a case where the pair stays strong beyond the 0.7500 threshold, the upper line of the stated bearish formation and October’s peak will lure the bulls around 0.7560.
Alternatively, three-week-old horizontal support, near 0.7380, seems live on the AUD/USD pair seller’s radar but any further weakness will be challenged by the 200-SMA level around 0.7360.
AUD/USD: Four-hour chart
Trend: Bearish
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.