• AUD/USD takes offers to refresh intraday low, prints the first daily loss in four.
• 61.8% Fibonacci retracement level will challenge the bears ahead of the key 0.6690 support confluence.
• Rising wedge teases sellers, 200-day EMA acts as immediate upside hurdle.

AUD/USD begins the key week on the negative side as it takes offers to refresh the intraday low near 0.6770 while snapping a three-day uptrend during early Monday in Asia. In doing so, the Aussie pair pokes the 61.8% Fibonacci retracement level of the pair’s August-October downside.

Even if the key Fibonacci retracement level, also known as the “Golden Ratio”, challenges the AUD/USD bears near 0.6770, the recently bearish MACD signals and the sluggish RSI (14) suggest the quote’s further downside. Also keeping the pair sellers hopeful is the one-month-old rising wedge bearish chart formation on the daily play.

It’s worth noting, however, that a convergence of the 100-day EMA and the stated wedge’s support line, near 0.6690, appears a tough nut to crack for the AUD/USD bears.

Following that, a south run towards the 38.2% Fibonacci retracement level near 0.6540 and then to the 0.6425 theoretical target can’t be ruled out.

Alternatively, the 200-day EMA level surrounding 0.6840 restricts immediate AUD/USD upside ahead of the aforementioned rising wedge’s top, close to 0.6880 by the press time.

In a case where the AUD/USD bulls keep the reins past 0.6880, the late August high near the 0.7000 round figure will be in focus.

AUD/USD: Daily chart

Trend: Further downside expected