AUD/USD Price Analysis: Remains vulnerable near multi-year lows
- AUD/USD comes under some fresh selling pressure on Wednesday.
- The recent downfall has been along a descending trend-channel.
- Further weakness to the 0.6500 mark remains a distinct possibility.
The AUD/USD pair came under some renewed selling pressure and dropped to a fresh 11-year low level of 0.6565 on Wednesday, albeit lacked any strong follow-through weakness.
The fact that oscillators on the daily chart are pointing to oversold conditions, traders seemed reluctant to place fresh bearish bets amid a modest recovery in the risk sentiment.
Looking at the technical picture, the pair has been trending lower along a descending trend-channel since the beginning of 2020, indicating a well-established near-term bearish trend.
Moreover, the pair's inability to register any meaningful recovery suggests that the near-term bearish pressure might still be far from being over and warrant some caution for bulls.
Hence, some follow-through weakness, towards testing the lower end of the mentioned trend-channel, currently near the key 0.6500 psychological mark, remains a distinct possibility.
On the flip side, the 0.6600 round-figure mark now seems to attract some fresh selling and cap any attempted recovery near the overnight swing highs, around the 0.6620-25 region.
AUD/USD daily chart