#AUDUSD @ 0.67355 Investors should brace for more downside on Bearish Marubozu formation. (Pivot Orderbook analysis)

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• Investors should brace for more downside on Bearish Marubozu formation.
• The 50-EMA has acted as a major hurdle for the asset near 0.6900.
• The RSI (14) is on the verge of dropping into the bearish range of 20.00-40.00.

The pair currently trades last at 0.67355.

The previous day high was 0.6916 while the previous day low was 0.6727. The daily 38.2% Fib levels comes at 0.6799, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6844, expected to provide resistance.

The AUD/USD pair is attempting to recover after a bloodbath. The asset slipped vertically to near 0.6725 after the release of an elevated US inflation rate. An attempt of a rebound could be a dead cat bounce as strength is not visible. In the late Tokyo session, the major is juggling in a narrow range of 0.6723-0.6747.

The formation of a Bearish Marubozu candlestick pattern has concluded the short-term pullback move. The occurrence of the above-mentioned candlestick pattern shows the strength of the greenback bulls and advocates more weakness ahead.

The asset has sensed resistance from the 50-period Exponential Moving Average (EMA) at around 0.6900. This will continue to remain a hurdle for the aussie bulls.

Meanwhile, the Relative Strength Index (RSI) (14) is on the verge of dropping into the bearish range of 20.00-40.00. This will trigger a downside momentum and will bring more weakness to the counter.

A break below Wednesday’s low at 0.6723 will drag the asset towards the lower portion of the demand zone placed in a range of 0.6670-0.6700 on a daily scale. A breach of the demand zone will unleash the greenback bulls and the asset will decline towards the round-level support of 0.6600.

On the flip side, a break above September 5 high at 0.6804 will drive the asset towards August 29 low at 0.6841, followed by August 31 high at 0.6904.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6737 at the time of writing. Pair opened at 0.6735 and is trading with a change of 0.03 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6853, 50 SMA 0.6895, 100 SMA @ 0.6962 and 200 SMA @ 0.7113.

The previous day high was 0.6916 while the previous day low was 0.6727. The daily 38.2% Fib levels comes at 0.6799, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6844, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6669, 0.6603, 0.648
• Pivot resistance is noted at 0.6859, 0.6982, 0.7048

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