AUDUSD justifies its risk-barometer status aptly as it remains near the two-year bottom, inside a 12-day-long bearish channel. The quote’s further downside, however, appears limited in the short-term due to the nearness to the stated channel’s lower line, close to 0.6690 at the latest. That said, the 61.8% Fibonacci Expansion (FE) of June 16 to July 05 moves, near 0.6705, could offer immediate support to the Aussie pair. In a case where the bears refrain from stepping back from 0.6690, the 78.6% FE level near 0.6650 could gain major attention.
Alternatively, the 50-SMA level surrounding 0.6800 guards the immediate recovery moves ahead of the immediate descending channel’s upper line, around 0.6840 by the press time. It’s worth noting that a clear upside break of the 0.6840 hurdle isn’t a call to the AUDUSD bulls as the 100-SMA level of 0.6855 could challenge the advances afterward. Should the quote rises past 0.6855, the odds of its run-up towards the late June swing high near 0.6965 and then to the 0.7000 psychological magnet can’t be ruled out.
Overall AUDUSD remains in a bearish trajectory, despite the recently firmer Aussie jobs report and increasing calls about the RBA’s aggression. However, the downside room appears limited.
