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Title: AUD/USD Price Analysis: More downside is on cards, 0.6700 eyed

September 5, 2022 01:08 AM ET

By: AnalysisWatch

AUD/USD is trading in a narrow range of 0.6774-0.6800 during the Asian session. After a gap down opening, Australian bulls attempted to break through the critical 0.6800 level. However, the risk-free market tone reinforced the greenback bulls.

On a four-hour scale, the asset experienced a sharp decline after facing barricades around the 61.8% Fibonacci retracement (placed between the July 14 low of 0.6682 and the August 11 high of 0.7137) near 0.6857. The presence of critical hurdles in the attempt to break above the 61.8% Fibonacci retracement warrants the completion of the upcoming 100% retracement.

The 20- and 50-period exponential moving averages (EMAs) at 0.6820 and 0.6850, respectively, are declining, reinforcing the downside filters.

At the same time, the Relative Strength Index (RSI) (14) is expected to dip into the bearish 20.00-40.00 area, which will trigger a new bearish move.

If the asset falls below Thursday's low at 0.6770, the greenback bulls will be activated and could drag the Aussie bulls to the round support level at 0.6700, followed by the March 2020 high at 0.6657.

Alternatively, the Aussie bulls could regain strength and send the asset toward Wednesday's high at 0.6904 and a 38.2% Fibo retracement at 0.6964, if the asset decisively breaks above the 61.8% Fibo at 0.685

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