AUD/USD Price Analysis: Well-set to refresh two-year low around 0.6550

• AUD/USD remains on the back foot around 29-month low.
• Trend widening formation, oversold RSI could restrict short-term downside.
• 50-SMA could test immediate upside, May 2020 bottom can probe bears.

AUD/USD bears attack the 0.6600 threshold while refreshing the multi-month low during Thursday’s Asian session. In doing so, the Aussie pair remains inside a falling megaphone trend widening chart pattern amid the risk-off mood.

Given the bearish chart formation and the risk-aversion, as well as the quote’s sustained trading below the 50-SMA, the AUD/USD prices are likely to refresh the 29-month bottom.

In that case, the stated formation’s support line near 0.6550 could challenge the pair bears before directing them to the May 2020 low near 0.6370.

Should the AUD/USD pair remains bearish past 0.6370, the odds of its slump towards the late March 2020 swing high near 0.6215 can’t be ruled out.

Alternatively, recovery moves will initially aim for the 50-SMA hurdle surrounding 0.6735 before highlighting the stated bearish chart formation’s upper line, close to 0.6865 at the latest.

Even so, the monthly high near 0.6915 and the 0.7000 psychological magnet could challenge the Aussie pair’s further upside before giving control to the bulls.

AUD/USD: Four-hour chart

Trend: Limited downside expected