AUD/USD Price Analysis: Sets for further decline amid risk-off mood

• AUD/USD is seeking a cushion around 0.6660, however, the downside seems favored.
• The US Dollar Index is expected to show severe volatile moves ahead of the FOMC minutes.
• AUD/USD has slipped below the Rising Channel chart pattern, which indicates a bearish reversal.

The AUD/USD pair is looking for a cushion around 0.6660 in the London session. The Aussie asset witnessed a steep fall as the risk-aversion theme is in action. Market mood has dampened as investors are expected to remain light ahead of the second-quarter result season.

The US Dollar Index (DXY) is expected to show severe volatile moves ahead of the release of the Federal Open Market Committee (FOMC) minutes. The minutes would provide a detailed explanation behind the unchanged interest rate decision by the Fed taken in the June meeting.

Meanwhile, the Australian Dollar is facing pressure after the release of the weak Manufacturing PMI data. The economic data landed at 50.3, lower than the expectations and the former release of 50.7.

AUD/USD has slipped below the Rising Channel chart pattern on a four-hour scale, which indicates a bearish reversal. Earlier, the Aussie asset rebounded after finding strength near the 61.8% Fibonacci retracement (plotted from May 31 low at 0.6505 to July 16 high at 0.6900) at 0.6628.

The major has slipped below the 50-period Exponential Moving Average (EMA) at 0.6675, which indicates that the short-term trend has turned bearish.

Adding to that, the Relative Strength Index (RSI) (14) has slipped into the 40.00-60.00 range. Further slippage would activate the bearish momentum.

A confident break June 29 low at 0.6595 would drag the asset toward June 02 low at 0.6565 and the round-level support at 0.6500.

On the flip side, a decisive break above 38.2% Fibo retracement at 0.6732 would expose the asset to June 23 high at 0.6767, followed by the round-level resistance at 0.6800.

AUD/USD four-hour chart