AUD/USD Price Analysis: More downside on cards amid a risk-off market mood

• AUD/USD is expected to kiss the upward-sloping trendline of the Ascending Triangle amid a risk-off impulse.
• The 200-EMA at 0.6725 is still providing support to the Australian Dollar.
• A 40.00-60.00 range oscillation by the RSI (14) indicates consolidation in the major.

The AUD/USD pair has displayed a less-confident rebound after dropping to near 0.6730. The Aussie asset is likely to conclude its recovery move sooner and may resume its downside journey as investors have underpinned the risk-aversion theme in the market.

The US Dollar Index (DXY) soared to near 105.00 after the Automatic Data Processing (ADP) agency in the United States announced bumper employment generation in December month. For further action, investors will focus on the release of the US Nonfarm Payrolls (NFP) data.

AUD/USD is declining towards the upward-sloping trendline of the Ascending Triangle chart pattern formed on a four-hour scale. The upward-sloping trendline of the chart pattern is plotted from December 20 low at 0.6629 while the horizontal resistance is placed from December 13 high at 0.6693.

The Aussie asset has dropped below the 50-period Exponential Moving Average (EMA) at 0.6780. While the 200-EMA at 0.6725 is still providing support to the Australian Dollar.

The Relative Strength Index (RSI) (14) is continuously oscillating in a 40.00-60.00 range, which indicates rangebound action till the release of a potential trigger ahead.

A downside move below December 29 low at 0.6710 will drag the major further toward December 22 low at 0.6650 followed by November 21 low at 0.6585.

On the contrary, a decisive break by the Aussie asset above December 13 high at 0.6893 will drive the major towards August 30 high at 0.6956 and the psychological resistance at 0.7000

AUD/USD four-hour chart