AUDUSD has been in a steep downtrend since early March, generating a profound structure of lower highs and lower lows. Although the pair managed to find its feet and traded sideways during the past week, it soon broke the pattern to the downside to form a fresh 29-month low of 0.6234.
The short-term oscillators are endorsing this bearish near-term bias. Specifically, the RSI is hovering within its 30-oversold zone, while the MACD histogram has retreated further below its red signal line in the negative territory.
Should selling pressures intensify, the pair could initially challenge the 29-month low of 0.6234. Dipping beneath that region, the price would descend towards its pandemic lows, where the April 2020 support could act as the next downside barrier. Failing to halt there, the spotlight may turn to the crucial psychological mark of 0.6000.
On the flipside, bullish actions could propel the price towards its recent support region of 0.6362, which might now act as resistance. Conquering this barricade, the bulls could then aim for 0.6546, with the latter being the upper boundary of its recent sideways pattern. If this barricade fails, the price may edge higher to test the July low of 0.6680.
Overall, even though AUDUSD has come under tremendous downside pressure, the momentum indicators currently suggest that the market has reached oversold levels. Therefore, an upside correction could be on the cards.
