AUD/USD Price Analysis: Sellers attack 0.7100 on rising wedge confirmation

• AUD/USD refreshes intraday low after confirming bearish chart pattern.
• 100-SMA breakdown joins downbeat MACD, RSI to favor sellers.
• 200-SMA, wedge’s resistance line restricts short-term recovery.

AUD/USD takes offers around 0.7110 to refresh intraday low, extending Friday’s losses during Monday’s Asian session.

The pair’s reversal from 61.8% Fibonacci retracement (Fibo.) of mid-November to early December downside portrayed a rising wedge bearish chart pattern. The downside bias gains support from bearish MACD signals and descending RSI line.

However, a sustained break below the 100-SMA, near 0.7125 by the press time, becomes necessary for the AUD/USD sellers to aim for a theoretical target that signals fresh 2021 low surrounding 0.6880.

During the fall, the 0.7030 level and the 0.7000 threshold may act as intermediate halts before the lows marked during November 2020 and so far December 2021, near 0.6990, will also test the AUD/USD bears.

Alternatively, recovery moves may aim for 50% Fibo. level near 0.7180 but a convergence of the stated wedge’s resistance line and 200-SMA, around 0.7220, will challenge the AUD/USD bulls afterward.

Adding to the upside filters is the 61.8% Fibonacci retracement level near 0.7225 and late November’s swing high near 0.7275.

AUD/USD: Four-hour chart

Trend: Further weakness expected