AUD/USD Price Analysis: Greenback bulls attack seven-week-old support at 0.6830

• The asset has tumbled below seven-week-old support at 0.6829 and has renewed a two-year low at 0.6812.
• Vertically declining 10- and 20-period EMAs are hinting at a severe weakness in the counter.
• The RSI (14) is attempting to shift into the bearish range of 20.00-40.00.

The AUD/USD pair has witnessed a sigh of relief after displaying a sheer downside move. The greenback bulls have dragged the asset firmly to near 0.6813 in the early European session after violating Thursday’s low at 0.6854.

The prolonged weakness in the asset has compelled us to shift to a higher time frame. On the daily scale, the greenback bulls have attacked the seven-week-old critical support of 0.6829, recorded on May 12, and have recorded a fresh two-year low at 0.6812. Meanwhile, the potential supply area has shifted to near January 28 low at 0.6966.

The 10- and 20-period Exponential Moving Averages (EMAs) at 0.6915 and 0.6967 respectively are declining perpendicularly, which signals an intense sell-off ahead.

Meanwhile, the Relative Strength Index (RSI) (14) is on the verge of shifting into the bearish range of 20.00-40.00, which will fetch a downside impulsive wave. The momentum oscillator, RSI (14) is not displaying any signs of divergence and oversold.

A minor rebound to near June 14 low at 0.6850 will be a bargain sell for the market participants. An occurrence of the same will activate sellers and will drag the asset towards the round-level support and 15 June 2020 low at 0.6800 and 0.6776 respectively.

Alternatively, the aussie bulls could lift the asset price higher if the major overstep Wednesday’s high at 0.6965. This will drive the asset towards the psychological resistance at 0.7000, followed by June 13 high at 0.7035.

AUD/USD daily chart