AUD/USD Price Analysis: Limited downside room available near 31-month low

• AUD/USD remains pressured around 2.5-year low, down for the sixth consecutive day.
• Oversold RSI, March 2020’s peak could tests bears during further downside.
• Buyers need validation from 0.6535 to retake control.

AUD/USD remains on the back foot around the 31-month low, down 0.60% intraday near 0.6265 heading into Tuesday’s European session.

In doing so, the Aussie pair drops for the sixth consecutive day while extending the previous week’s U-turn from a downward sloping support-turned-resistance line from May 12, around 0.6535 by the press time.

It should, however, be noted that the quote’s sustained trading below the 61.8% Fibonacci Expansion (FE) of September 20 to October 04 moves and the 10-DMA also restrict the AUD/USD pair’s immediate upside around 0.6300 and 0.6430 in that order.

That said, the pair’s successful trading below the stated hurdles keeps the bears hopeful. However, there prevails a limited downside room as the March 2020 peak surrounding 0.6215 could join the nearly oversold RSI (14) and challenge the quote’s further declines.

Following that, the 0.6000 threshold and April 2020 bottom near 0.5980 could lure the AUD/USD sellers.

Alternatively, an upside clearance of the 0.6535 resistance line, previous support, needs validation from the monthly high near 0.6550 to recall the buyers.

AUD/USD: Daily chart

Trend: Limited downside expected