AUD/USD Price Analysis: Further downside eyes 0.6820

• AUD/USD prices remain pressured toward two-year low, fades bounce off intraday low.
• Weekly resistance line guards immediate recovery moves.
• Downbeat RSI, sustained trading below 100-DMA keeps sellers hopeful to retest nine-month-old support line.

AUD/USD reverses Friday’s corrective pullback from a two-year low, stays depressed around 0.6890 heading into Monday’s European session.

The Aussie pair managed to justify the last week’s rebound from a downward sloping trend line from August 2021. However, failures to cross a one-week-old descending resistance line, around 0.6925-30 by the press time, challenge the recovery moves.

The pullback moves, however, remain less challenging until staying beyond the aforementioned trend line support, around 0.6820 at the latest.

In a case where AUD/USD prices drop below 0.6820, the mid-June 2020 low near 0.6775 and May 2020 peak around 0.6685-80 will be in focus.

On the contrary, an upside break of 0.6930 will need validation from January’s low surrounding 0.6965 before eyeing the early May swing low, close to 0.7030.

Overall, AUD/USD prices are likely to remain weak but the bears have limited room on the downside.

AUD/USD: Daily chart

Trend: Further downside expected