AUD/USD Price Analysis: Pair faces challenges near 0.6420 to extend gains

• AUD/USD struggles to continue the winning streak due to a slight negative bias.
• MACD is signaling a momentum shift towards a reversal move.
• The 0.6400 psychological level emerges as the initial support following the previous week’s low.
• Key resistance appears at the 21-day EMA lined up with the 0.6450 psychological level.

AUD/USD pair struggles to extend its recent winning streak, hovering with a slight negative bias around the 0.6420 level during the Asian session on Tuesday.

The pair is experiencing downward pressure due to the release of Australia’s disappointing Westpac Consumer Confidence (Sep), which fell by 1.5% compared to the previous decline of 0.4%. However, the pullback in the US Dollar (USD) has provided the support to underpin the AUD/USD pair.

The pair may encounter initial support around 0.6400 psychological level. A firm break below the level could put pressure on the AUD/USD pair to navigate the area around the previous week’s low at 0.6357 lined up with the 0.6350 psychological level.

On the upside, a significant resistance level for the AUD/USD pair appears at the 21-day Exponential Moving Average (EMA) at 0.6448 lined up with the 0.6450 psychological level, followed by the 23.6% Fibonacci retracement at 0.6483 level.

The Moving Average Convergence Divergence (MACD) line remains below the centerline but shows divergence above the signal line. This configuration suggests a potential shift in momentum in the market, which can be seen as a signal that the recent downtrend may be losing strength, and a reversal move in the asset's price might be on the horizon.

However, the traders of the AUD/USD pair will likely observe the 14-day Relative Strength Index (RSI), which suggests a bearish sentiment in the short term as it lies below the 50 level.

AUD/USD: Daily Chart