Technical Analysis: AUDUSD bears jostle with 10-month-old horizontal support

Delta covid variant keeps pushing more parts of Australia under local lockdowns, dragging AUDUSD to refresh yearly low and ignore RBA Minutes and PBOC inaction on early Tuesday. It should, however, be noted that the bears are at the test as the oversold RSI conditions and a horizontal line comprising highs marked during late 2020 challenges further declines above 0.7300. It should, however, be noted that a daily closing below 0.7340 will keep the sellers directed towards mid-October 2020 tops near 0.7240.

Meanwhile, 61.8% Fibonacci retracement near 0.7380 and September highs around 0.7410 could challenge bulls during the corrective pullback, likely if the pair closes beyond 0.7340. Though, 50% Fibonacci retracement and 200-DMA, respectively around 0.7500 and 0.7585, will be tough nuts to crack for the pair buyers. Overall, AUDUSD remains bears but intermediate bounces can’t be ruled out.

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