AUD/USD Price Analysis: Attempts a rebound near 0.6680-0.6700 demand zone

• Aussie bulls have defended further downside after picking bids around 0.6680-0.6700 demand zone.
• Declining 20-EMA at 0.6816 favor further weakness in the counter.
• A decline into the bearish range by the RSI (14) will result in a fresh two-year low.

The AUD/USD pair has extended its recovery after overstepping the round-level hurdle of 0.6700 in the Tokyo session. The asset is advancing sharply and is expected to display a sustained pullback. On a broader note, the asset is defending its two-year low at around 0.6680.

The asset has attempted a firmer rebound after sensing a decent buying interest around the demand zone placed in a narrow range of 0.6680-0.6700 on a daily scale. The downward-sloping trendline paced from August 15 high at 0.7125 will act as a major hurdle for the aussie bulls.

The declining 20-period Exponential Moving Average (EMA) at 0.6816 favors the downside bias. Also, the Relative Strength Index (RSI) (14) is on the verge of slipping into the bearish range of 20.00-40.00, which will trigger a downside momentum.

A contra bet at this juncture could create a fortune for the market participants. A minor correction towards an intraday cushion around 0.6710 could be capitalized for initiating longs, which will send the asset towards Thursday’s high at 0.6770, followed by August 29 low at 0.6841.

Alternatively, a break below the above-mentioned demand zone will drag the asset towards the round-level support at 0.6600. A slippage below the latter will drag the asset towards 25 May 2020 low at 0.6520.

AUD/USD daily chart