AUD/USD Price Analysis: Greenback bulls see 0.7000 as a hurdle

• A break below 50% Fibo retracement has strengthened the greenback bulls.
• The 50- and 200-EMAs have displayed a death cross formation that adds to the downside filters.
• The RSI (14) has shifted into a bearish range of 20.00-40.00.

The AUD/USD pair is declining sharply after a downside break of the consolidation formed in a 0.7038-0.7064 range in the early Tokyo session. The asset is driving lower over the past week after slipping below the crucial support of 0.7150.

A break below 50% Fibonacci retracement (which is placed from May 12 low at 0.6829 to June 3 high at 0.7283) is placed at 0.7055 drifted the asset lower. The asset formed an initiative selling structure near the 50% Fibo retracement, which has strengthened the greenback bulls. Now, more downside is expected towards the psychological support of 0.7000 and a break of the same will infuse adrenaline rush into the greenback bulls.   

A death cross, represented by the 50- and 200-period Exponential Moving Averages (EMAs) at 0.7180, adds to the downside filters.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into a bearish range of 20.00-40.00, which signals more downside ahead.

A decisive drop below the psychological support of 0.7000 will bring more offers to counter, which will drag the aussie bulls towards May 18 low at 0.6949, followed by May 10 low at 0.6910.

On the flip side, aussie bulls could regain control if the asset oversteps Friday’s high at 0.7070. This will send the asset towards 38.2% Fibo retracement at 0.7110. An upside break of 38.2% Fibo retracement will drive the asset towards May 31 low at 0.7150.

AUD/USD hourly chart