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AUD/USD Price Analysis: Price breaks six-week-old resistance below 0.6700 as bulls lose momentum

Daniel Rogers

Mar 15, 2023 11:50

AUD/USD accepts bids up to 0.6680 on Thursday morning as the currency pair falls toward retesting its intraday low of 0.6671. In doing so, the Aussie pair posts its first daily loss in three days as bulls flirt with a resistance line with a downward trajectory from early February.


In addition to the six-week-old descending resistance line, AUD/USD buyers are challenged by a lethargic RSI (14) and ambiguous MACD signals unless the price remains below the 0.6700 trend line resistance.


Even if the Aussie pair transcends the 0.6700 round number, a convergence of the 100-DMA and the 200-DMA around 0.6770-75 appears challenging for the bulls to surmount.


If the AUD/USD exchange rate remains above 0.6775, the December 2022 high near 0.6895 and the 0.6900 round number may serve as the bulls' final line of defense.


In contrast, a pullback has yet to materialize beyond the 50% Fibonacci retracement level of the risk-barometer pair's upside from October 2022 to February 2023, which was near 0.6655 at the time of publication.


Afterwards, the most recent swing low and the 61.8% Fibonacci retracement level, also known as the golden Fibonacci ratio, around 0.6565 and 0.6550, respectively, could challenge the AUD/USD bears prior to granting them control.


As China data approaches, the AUD/USD pair is likely to experience a retracement, but downside potential appears limited.