AUD/USD Price Analysis: Hangs near multi-week lows, seems vulnerable to slide further

• AUD/USD met with some fresh supply on Wednesday and erased the overnight modest gains.
• The set-up seems tilted in favour of bearish traders and supports prospects for further losses.
• Attempted recovery move might continue to confront stiff resistance near the 0.7360-65 area.

The AUD/USD pair failed to capitalize on the previous day's modest bounce from three-week lows and met with some fresh supply on Wednesday. The pair maintained its offered tone through the first half of the European session and was last seen trading near daily lows, around the 0.7330-25 region.

The US dollar remained supported by firming market expectations that the Fed will begin its pandemic-era stimulus sooner rather than later. This, along with COVID-19 jitters, further underpinned the greenback's safe-haven demand and exerted some additional pressure on the perceived riskier aussie.

Looking at the technical picture, the overnight attempt recovery move faltered near a short-term ascending trend-line support breakpoint. The mentioned support-turned-resistance is currently pegged near the 0.7360-65 supply zone, which should now act as a key pivotal point for short-term traders.

Meanwhile, technical indicators on hourly/daily charts maintained their bearish bias and are still far from being in the oversold territory. The set-up favours bearish traders and supports prospects for the resumption of the prior/well-established downtrend witnessed over the past three months or so.

That said, it will still be prudent to wait for some follow-through selling below the 0.7300-0.7290 region, or YTD lows before positioning for any further depreciating move. The AUD/USD pair might then accelerate the slide towards the 0.7230-25 intermediate support en-route the 0.7200 round figure.

On the flip side, the 0.7360-65 region might continue to act as immediate strong resistance. Any further move up might be seen as a selling opportunity near the 0.7400 mark. This, in turn, should keep a lid on any further gains for the AUD/USD pair near monthly swing highs, around the 0.7425 area.

AUD/USD 4-hour chart

Technical levels to watch