AUD/USD Price Analysis: Looks to test yearly lows at 0.6970

• The asset is approaching the demand zone in a range of 0.6970-0.7000 swiftly.
• Momentum oscillator RSI (14) has slipped below 30.00, which signals an oversold scenario.
• A bear cross of 20-and 50-EMAs adds to the downside filters.

The AUD/USD pair is scaling lower sharply after slipping below the previous week’s low at 0.7055. The asset has continued its two-day losing streak on Monday and is likely to test its yearly lows at 0.6967. The major has been trading lower continuously this month after failing to sustain above the round-level resistance of 0.7600 on April 5.

On the daily scale, the asset is approaching its crucial demand zone, which is placed in a narrow range of 0.6966-0.7000. A bear cross of 20- and 50-period Exponential Moving Averages (EMAs) at 0.7340 is advocating more weakness in the counter going forward.

The Relative Strength Index (RSI) (14) has registered a fresh low at 27.27, which adds to the downside filters. The momentum oscillator RSI (14) is not showing any sign of divergence but a pullback based on an oversold situation cannot be ruled out.

Investors should keep an eye on a pullback towards the 10-EMA at 0.7182, which will provide a selling opportunity to the market participants.  This will activate responsive sellers, which may drag the asset towards the previous week’s low at 0.7055, followed by the lower boundary of the demand zone at 0.6966.

On the flip side, aussie bulls may regain strength if the asset oversteps February 10 high at 0.7250, which will send the asset towards the January high at 0.7315. A beach of the latter will drive the asset towards the round level resistance at 0.7400.

AUD/USD daily chart