AUD/USD Price Analysis: Rising wedge confirmation teases bears below 0.6680 previous support

  • After reporting a weekly loss and confirming a bearish chart formation, the AUD/USD licks its wounds.
  • Australian pair buyers are challenged by pessimistic oscillators and major SMAs.
  • Monthly low can serve as a temporary stop during the hypothetical aim surrounding the high in October 2022.

After a turbulent week, buyers of the AUD/USD struggle to maintain control around 0.6650 during Monday’s lacklustre trading session. The Australian pair then licks its wounds after recording the weekly loss, but there isn’t enough recovery vigour to sustain the late Friday corrective bounce off a one-week low.

It should be highlighted that the confirmation of a two-week-old rising wedge negative chart formation on the AUD/USD pair joins bearish MACD signals and a bearish RSI (14), which is not oversold, to give sellers hope.

Yet, the recent bottom near 0.6625 tempts intraday Aussie pair sellers before drawing attention to the monthly low of 0.6564.

After that, the October 2022 peak of close to 0.6645 joins the notional goal of rising wedge confirmation, around 0.6650, to provide the sellers with strong support.

The 100-bar Simple Moving Average (SMA), on the other hand, guards any immediate recovery advances in the AUD/USD pair before the wedge’s lower line, which is now at 0.6680.

The wedge’s top line and the 200-SMA, which are located near 0.6750 and 0.6760, respectively, could provide a threat to the bulls even if the Australian dollar exceeds the 0.6680 support-turned-resistance level.

It’s interesting to note that the monthly high of roughly 0.6785 serves as the AUD/USD bears’ last line of defence.