- Descending Triangle’s downward sloping trendline has acted as a major barricade.
- Aussie bulls may also surrender the support of 20-EMA after the 50-EMA.
- The RSI (14) has sensed hurdles while crossing the 60.00, which adds to the downside filters.
The AUD/USD pair is displaying vulnerable performance in the Asian session after failing to sustain above the critical hurdle of 0.6850. The asset is witnessing a bearish open-rejection reverse trading session. The asset moved marginally higher after opening flat, found barricades above the crucial hurdle of 0.6850, slipped lower and extended losses after slipping below the opening price at 0.6840.
On a four-hour scale, the pair has sensed resistance after attempting a break above the Descending Triangle pattern whose downward-sloping trendline is plotted from June 16 high at 0.7070. While the horizontal support is placed from July 1 low at 0.6764.
Offers are increased in the asset as it has faced a tough fight against the 50-period Exponential Moving Average (EMA) at 0.6848. The aussie bulls may surrender the cushion of 20-EMA at 0.6835, which may bolster the downside bias.
Meanwhile, the Relative Strength Index (RSI (14) has faced resistance around 60.00 and has slipped lower, which indicates that the asset is no more bullish for now.
Should the asset drop below July 1 low at 0.6766, the greenback bulls will drag the asset towards the 29 May 2020 high at 0.6683. A breach of the latter will drag the asset towards the 30 April 2020 high at 0.6570.
On the contrary, the greenback bulls could lose their grip if the asset violates Tuesday’s high at 0.6896. An occurrence of the same will drive the asset towards June 30 high at 0.6920, followed by June 28 high at 0.6965.
AUD/USD four-hour chart