AUD/USD technical analysis: Risks skewed to the downside after rejection at 38.2% Fib

• AUD/USD failed to take out key Fibonacci hurdle for three consecutive days. 
• A break below 0.6962 would shift risk in favor of a drop to recent lows. 

AUD/USD risks falling below key support at 0.6962, having faced rejection at key Fibonacci retracement level for three consecutive days. 

The currency pair failed to secure a daily close above 0.6996 – 38.2% Fibonacci retracement of 0.7206-0.6865 on Tuesday and Wednesday. Further, that level reversed gains on Thursday. 

The repeated rejection at the key hurdle has shifted risk in favor of a bearish reversal below 0.6962 – the low of the inside day candle created on Wednesday. 

A bearish close, if confirmed, would open the doors to retest of recent lows near 0.6865. 

On the higher side, a daily close above the Fibonacci resistance is needed to the revive the bullish setup. 

Daily chart

Trend: Neutral-to-bearish

Pivot points