AUD/USD Price Analysis: Pair treads water above 0.6400, technical indicates selling bias
- AUD/USD bears are active after US data continues to show strength.
- Monthly low at 0.6364 could be a minor support as technical indicates the selling bias.
- Seven-day EMA emerges to be a key barrier, following the 0.6500 psychological level.
AUD/USD struggles to hold ground from continuing the losing streak, hovering around 0.6400 during the Asian session on Monday. The AUD/USD pair is experiencing downward pressure due to improved employment and manufacturing survey data. Traders await Australia’s preliminary S&P Global Composite PMI scheduled to release later in the week, seeking fresh impetus on Australian economic activities.
The Moving Average Convergence Divergence (MACD) line indicates the selling bias in the pair as it stays in the negative territory of the centerline and shows divergence below the signal line. The monthly low at 0.6364 which was marked on Thursday, appears to be the immediate support. A collapse below the latter could push the pair to navigate the region around 0.6300 psychological level.
In the short-term view, the bearish sentiment of the AUD/USD pair remains unchanged until the 14-day Relative Strength Index (RSI) remains below 50.
On the upside, the seven-day Exponential Moving Average (EMA) at 0.6441 emerges to be a key barrier. A break above that level could provide support to the AUD/USD pair to explore around the 23.6% Fibonacci retracement at 0.6489, followed by the 0.6500 psychological level.
AUD/USD: Daily Chart
