- AUD/USD fails to keep bounce off intraday low.
- Downward sloping RSI favors bears eyeing monthly bottom.
- February 23 low adds to the upside barriers.
AUD/USD holds lower ground, down 0.31% intraday around 0.7736, during the early Friday’s trading. In doing so, the aussie pair fades the latest bounce off intraday low of 0.7723 while declining for the second consecutive day.
It should be noted that the pair’s pullback from 0.7850, portrayed the previous day, suggests the failures to cross the early-month top and portrays a strong horizontal hurdle to the north around 0.7840-50.
Additionally, descending RSI line and challenges to the risk should also be considered favoring AUD/USD sellers.
Though, a clear break below an eight-day-old support line, at 0.7715 now, becomes necessary for the quote’s further weakness targeting the monthly low near 0.7620.
However, an extended south-run past-0.7620 will confirm the “double top” formation, with the tops near 0.7840-50, while suggesting a plunge to the late December 2020 lows surrounding 0.7460. During the fall, February low near 0.7560 can offer an intermediate stop to the bears.
On the flip side, a clear break of 0.7850 will have to cross the February 23 low of 0.7880 and the 0.7900 threshold before challenging the previous monthly peak close to the 0.8000 psychological magnet.
AUD/USD four-hour chart
Trend: Bearish
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