Title: AUD/USD Price Analysis: Attempts a rebound near 0.6680-0.6700 demand zone

September 16, 2022 12:49 AM ET

By: AnalysisWatch

The AUD/USD extended its recovery after breaking through the 0.6700 mark in the Tokyo session. The asset is advancing strongly and is expected to post a sustained pullback. From a broader perspective, the asset is defending its two-year low at around 0.6680.

The asset attempted a firmer bounce after feeling decent buying interest around the demand zone, which is placed in a narrow range of 0.6680-0.6700 on a daily scale. The downward sloping trendline from the August 15 high at 0.7125 will be a major hurdle for Australian bulls.

The falling 20-period exponential moving average (EMA) at 0.6816 favors the bearish bias. In addition, the Relative Strength Index (RSI) (14) is about to slide into the bearish 20.00-40.00 area, which will trigger bearish momentum.

A minor correction to an intraday cushion around 0.6710 could be capitalized to initiate long positions, which would send the asset towards Thursday's high at 0.6770, followed by the August 29 low at 0.6841.

Alternatively, a break below the aforementioned demand zone will send the asset towards the round support level at 0.6600. If the asset falls below this, it will be dragged down to the May 2020 low at 0.6520.