• AUD/USD extends pullback from monthly high, takes offers to refresh daily bottom.
• Sustained break of 50-day EMA, three-week-old ascending trend line favors sellers.
• Bulls need to wait for 0.7045-50 break for re-entry.
• Ascending trend line from early May restricts immediate downside.

AUD/USD remains on the back foot for the second consecutive day as it refreshes a weekly low around 0.6890 amid Wednesday’s Asian session.

In doing so, the Aussie pair sellers extend the previous day’s downside break of the 50-day EMA and an upward sloping trend line from July 14.

Given the recently downbeat RSI and an impending bear cross on the MACD, the recent AUD/USD weakness is likely to persist.

However, an upward sloping support line from May 12, close to 0.6880 by the press time, restricts immediate declines of the pair.

Following that, the 0.6765-60 area will be crucial to watch for the AUD/USD sellers as it holds the key for the pair’s south-run towards refreshing the yearly low, around 0.6670.

Meanwhile, recovery moves need to cross the 50-day EMA and the previous support line, respectively around 0.6960 and 0.6970, for fresh entry.

Even so, a convergence of the 100-day EMA and a downward sloping resistance line from April 20, close to 0.7045-50, appears a tough nut to crack for the AUD/USD bulls.

AUD/USD: Daily chart

Trend: Further weakness expected