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 at the 30-month low of 0.6169 and recoup some losses, it quickly moved lower after the 50-day simple moving average (SMA) curbed its upside.
The momentum indicators are endorsing this bearish near-term bias. Specifically, the RSI is declining below its 50-neutral mark, while the stochastic oscillator has dived in the oversold area.
Should selling pressures persist, the pair could initially test the 0.6210 support. A violation of the latter may pave the way for the 30-month low of 0.6169. Dipping beneath that region, the price might descend to form fresh multi-year lows, where the 0.6000 psychological mark could provide downside protection.
On the flipside, bullish actions could propel the pair towards its recent rejection region of 0.6546, which overlaps with the 50-day SMA. Conquering this barricade, the bulls may aim for the 0.6680 support, which could now act as resistance. Failing to halt there, further advances could cease at 0.6915 before the August high of 0.7136 comes under examination.
Overall, AUDUSD appears ready to revisit its lows since its rebound failed to strengthen. For that bearish tone to reverse, the pair needs to profoundly cross above its 50-day SMA.
