AUD/USD Price Analysis: Extends pullback from 50-HMA towards 0.6700

• AUD/USD reverses the previous day’s corrective pullback from two-year low.
• Impending bear cross on MACD, downbeat RSI hints at the quote’s further weakness.
• Weekly support line lures sellers, bulls need validation from fortnight-old horizontal area.

AUD/USD flirts with an intraday low near 0.6740 as it retreats from the 50-HMA during Wednesday’s Asian session. In doing so, the Aussie pair also reverses from a broad horizontal area established from July’s start.

In addition to the pullback from the short-term key hurdles, a looming bear cross on the MACD and downward sloping RSI (14), not oversold, also keeps AUD/USD sellers hopeful.

That said, the recent multi-month low of 0.6710 appears immediate support for the pair traders to watch ahead of a one-week-old descending trend line, close to the 0.6700 threshold.

Also acting as the downside filter is March 2020 top surrounding 0.6685.

Meanwhile, the 50-HMA guards the quote’s immediate recovery moves around 0.6760 before the previously mentioned resistance area, between 0.6765 and 0.6780, plays its role.

Should the AUD/USD prices rise beyond 0.6780, the pair buyers may brace for the monthly high of 0.6900.

Overall, AUD/USD holds its bearish bias but the downside appears limited.

AUD/USD: Hourly chart

Trend: Further weakness expected