July 15, 2022 01:24 AM ET
By: AnalysisWatch
As it extends its pullback from a week-old resistance line early on Friday morning in Europe, AUD/USD is taking bids to refresh intraday lows around 0.6730.
However, the Aussie pair's pullback will likely struggle around a month-old descending support line at 0.6695. The short-term downtrend is also confirmed by the downward sloping but not oversold RSI (14).
In the event that AUD/USD bears hold the reins beyond 0.6695, a fourteen-day support line at 0.6680 and the August 2019 low at 0.6670 will attract the market's attention.
Alternatively, a recovery remains elusive unless the price stays below 0.6765, which is the weekly resistance line.
Even then, a two-week descending resistance line around 0.6830 could challenge the pair's recovery. The 100-SMA hurdle around 0.6840 also acts as an upside filter.
If AUD/USD bulls manage to break 0.6840, the 0.6900 level could serve as the bears' last line of defense before steering the price towards the late June momentum high at 0.7070.
Overall, it is likely that AUD/USD will continue to fall, but the downside room seems limited.
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