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Title: AUD/USD Price Analysis: Slides towards monthly support line near 0.6880

August 19, 2022 12:29 AM ET

By: AnalysisWatch

AUD/USD remains on the defensive, with sellers attacking the 0.6900 threshold while hitting a two-week low during Friday's Asian session. In doing so, the Australian pair fell for the fifth consecutive day, while recently breaking the 200-SMA on the downside.

In addition to the downward break of the 200-SMA, bearish MACD signals are also favoring AUD/USD's decline toward an upward sloping support line dating back to July 21 at 0.6880 at press time.

It should be noted, however, that the RSI (14) is approaching oversold territory and may become a reason for the Aussie pair to bounce off the indicated support line.

Even if the quote remains weak above 0.6880, the 61.8% Fibonacci retracement of the July-August rise around 0.6850 could become an additional challenge for AUD/USD bears before targeting the top of the July 13 swing near the 0.6800 round figure.

Alternatively, the 200-SMA and week-old descending resistance lines near 0.6915 and 0.6935, respectively, could challenge intraday AUD/USD buyers.

Subsequently, a two-week-old horizontal resistance zone near the psychological 0.7000 level will be crucial for buyers of the pair to break through to regain control.

Overall, AUD/USD remains in the bearish crosshairs, but the room for downside action appears limited.

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