AUD/USD Price Analysis: Further downside hinges on 0.7070 break

• AUD/USD fades bounce off intraday low, keeps previous day’s pullback from 100-SMA.
• One-week-old horizontal area limits short-term downside ahead of weekly bottom.
• Monthly resistance line, 200-SMA add to the upside filters.

AUD/USD remains pressured around the intraday low, down 0.20% on a day near 0.7100 heading into Friday’s European session.

The Aussie pair hit the wall of resistance around 0.7265-70 the previous day before posting the biggest daily fall since February 2021. The pullback moves also get along with the descending RSI line, not oversold, to keep bears hopeful.

However, a weekly support line surrounding 0.7070 restricts the quote’s immediate downside, a break of which can direct AUD/USD prices towards the weekly low, also the lowest level since late January, around 0.7030.

Should the quote drop below 0.7030, the 0.7000 psychological magnet and the yearly bottom surrounding 0.6965 will be in focus.

Alternatively, recovery moves can aim for the 100-SMA, around 0.7235, ahead of targeting the 0.7265-70 resistance confluence, including the monthly resistance line and 38.2% Fibonacci retracement of the April-May fall.

In a case where AUD/USD prices rally beyond 0.7270, the odds of the pair’s further advances toward the 200-SMA level of 0.7365 can’t be ruled out.

AUD/USD: Four-hour chart

Trend: Further weakness expected