AUD/USD Price Analysis: More downside is on cards, 0.6700 eyed

• Availability of barricades around 61.8% Fibo retracement has strengthened bearish reversal bets.
• Declining 20-and 50-EMAs indicates a continuation of the downside move.
• A break into the bearish range of 20.00-40.00 by the RSI (14) will trigger downside momentum.

The AUD/USD pair is displaying topsy-turvy moves in a narrow range of 0.6774-0.6800 in the Asian session. After a gap down open, the aussie bulls attempted a break above the critical hurdle of 0.6800, however, the risk-off market tone strengthened the greenback bulls.

On a four-hour scale, the asset has witnessed a steep fall after facing barricades around the 61.8% Fibonacci retracement (placed from July 14 low at 0.6682 to August 11 high at 0.7137) near 0.6857. The availability of critical hurdles while attempting to overstep 61.8% Fibo retracement warrants a completion of 100% retracement ahead.

The 20-and 50-period Exponential Moving Averages (EMAs) at 0.6820 and 0.6850 respectively are declining lower, which adds to the downside filters.

Meanwhile, the Relative Strength Index (RSI) (14) is expected to dive into the bearish range of 20.00-40.00, which will trigger a fresh downside move ahead.

Should the asset drop below Thursday’s low at 0.6770, the greenback bulls will get activated and may drag the aussie bulls towards the round-level support at 0.6700, followed by 6 March 2020 high at 0.6657.

Alternatively, the aussie bulls could regain strength and may send the asset towards Wednesday’s high at 0.6904 and 38.2% Fibo retracement at 0.6964, if the asset oversteps 61.8% Fibo at 0.6857 decisively.

AUD/USD four-hour chart