#AUDUSD @ 0.66781 takes offers to refresh intraday low, bears attack two-year bottom marked last week., @nehcap view: Further weakness expected (Pivot Orderbook analysis)

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• AUD/USD takes offers to refresh intraday low, bears attack two-year bottom marked last week.
• Clear downside break of two-month-old trend line keeps sellers hopeful.
• Four-month-old bearish channel’s bottom in focus, 10-DMA acts as additional upside barrier.

The pair currently trades last at 0.66781.

The previous day high was 0.6748 while the previous day low was 0.6676. The daily 38.2% Fib levels comes at 0.6704, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.672, expected to provide resistance.

AUD/USD extends the previous day’s losses on the Fed day as it pokes the yearly low surrounding 0.6670 during early Wednesday morning in Europe.

In doing so, the AUD/USD pair not only stretches the previous day’s U-turn from the 10-DMA but also cheers a clear downside break of an upward sloping support line from mid-July, now resistance around 0.6710.

Adding to the strength of the bearish bias are the downbeat RSI and MACD, as well as a four-month-old descending trend channel formation.

That said, the quote is well on the way to testing the stated channel’s support line, around 0.6560. However, the 0.6600 round figure may offer an intermediate halt during the fall.

Also acting as a downside filter is the 61.8% Fibonacci Expansion (FE) of April-August moves, near 0.6535.

Meanwhile, recovery moves need not only cross the support-turned-resistance line around 0.6710 but also stay firmer past the 10-DMA, close to 0.6745 to convince buyers.

Overall, AUD/USD is on the bear’s radar ahead of the key Federal Open Market Committee (FOMC).

Trend: Further weakness expected

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6675 at the time of writing. Pair opened at 0.6689 and is trading with a change of -0.21% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6805, 50 SMA 0.6887, 100 SMA @ 0.6944 and 200 SMA @ 0.7103.

The previous day high was 0.6748 while the previous day low was 0.6676. The daily 38.2% Fib levels comes at 0.6704, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.672, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6661, 0.6633, 0.659
• Pivot resistance is noted at 0.6732, 0.6775, 0.6803

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