AUD/USD Price Analysis: Further downside hinges on 0.7220 breakdown

• AUD/USD consolidates the heaviest fall since early June near 11-month low.
• October 2020 tops offer immediate support ahead of a downward sloping trend line from April.
• 20-DMA, 61.8% Fibonacci retracement guard immediate upside amid lackluster MACD, RSI.

After declining the most in over two months the previous day, AUD/USD licks its wounds around 0.7255, up 0.05% intraday, amid Wednesday’s Asian session.

In doing so, the Aussie pair flirts with October 2020 tops as nearly oversold RSI challenges the sellers as MACD prints bearish signals.

Other than the stated horizontal support near 0.7240-45, a four-month-old descending support line near 0.7220 also challenges the AUD/USD bears.

Hence, the pair’s further downside needs to conquer the 0.7220 support, a break of which will direct the pair bears towards 0.7180 and then to the 0.7000 psychological magnet.

Alternatively, the corrective pullback may aim for July’s low of 0.7288 and the 0.7300 threshold.

However, 20-DMA level of 0.7355 and 61.8% Fibonacci retracement of November 2020 to February 2021 upside near 0.7380 challenges the AUD/USD bulls afterward.

AUD/USD: Daily chart

Trend: Corrective pullback expected