• The demand zone in a 0.6828-0.6850 range will be a major barricade for the aussie bulls.
• Declining 20-EMA at 0.6850 adds to the downside filters.
• An establishment of the RSI (14) in a 20.00-40.00 range indicates more downside ahead.

The AUD/USD pair has given a downside break of the consolidation formed in a narrow range of 0.6808-0.6828 in the early Tokyo session. The asset displayed a rebound after hitting a low of 0.6764 on Friday. However, the pessimism on the broader timeframe is expected to guide the asset confidently.

On a four-hour scale, the aussie bulls have faced barricades around the potential demand zone that is placed in a narrow range of 0.6828-0.6850, which coincides with a fresh two-year-low.

The antipodean has failed to overstep the 10-period Exponential Moving Average (EMA) after attacking it at 0.6828 in the Tokyo session. Also, the 20-period EMA at 0.6850 is declining which adds to the downside filters.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00 for the first time in the past two weeks. An establishment into the bearish range b the RSI (14) indicates further weakness in the counter.

Should the asset violates Monday’s low at 0.6793, the greenback bulls will drag the asset towards the 29 November 2019 low at 0.6754. A breach of the latter will fetch more offers for the asset and will further drag the major towards the 2 October 2019 low at 0.6670.

Alternatively, a break of Wednesday’s high at 0.6965 will strengthen the aussie bulls. This will drive the asset towards the psychological resistance at 0.7000, followed by June 13 high at 0.7035.

AUD/USD four-chart