AUD/USD Price Analysis: Bears approach 0.6700 support confluence

• AUD/USD takes offers to extend pullback from late February.
• Previous resistance line, weekly horizontal support can challenge Aussie pair bears amid descending RSI towards oversold territory.
• U-turn from immediate upside hurdle, bearish MACD signals keep sellers hopeful; bulls need validation from 200-HMA.

AUD/USD holds lower grounds near the intraday bottom surrounding 0.6730, reversing the previous day’s gains heading into Thursday’s European session.

In doing so, the Aussie pair extends the previous day’s pullback from the February 23 swing low amid bearish MACD signals.

Adding strength to the downside bias is the lower-high formation since late Wednesday, as well as the quote’s sustained trading below the 200-Hour Moving Average (HMA).

Amid these plays, the AUD/USD pair is all set for further downside.

However, a convergence of the previous resistance line from February 20 and a horizontal area comprising the lows marked so far during the current week, around the 0.6700 round figure, appears a tough nut to crack for the sellers.

Not only the stated support confluence but the RSI (14) line also challenges the Aussie pair’s further downside by speedily dropping towards the oversold territory.

In a case where the AUD/USD remains bearish past 0.6700, a quick fall toward December 2022 low surrounding 0.6630 can’t be ruled out.

On the flip side, a successful break of the aforementioned horizontal resistance near 0.6785 guards the AUD/USD pair’s immediate upside. Following that, the 200-HMA level of near 0.6800 may act as the last defense of the bears.

AUD/USD: Hourly chart

Trend: Limited downside expected