AUD/USD Price Analysis: Refreshes yearly lows as bears dominate below 0.7120

• AUD/USD edges lower on Friday in the initial European trading hours.
• More downside for pair if price decisively breaks 0.7120 level.
• Oversold MACD implies a wait-and-watch approach before placing aggressive bids.

AUD/USD continues to trade lower following the previous session’s sluggish momentum in the European trading hours. The pair opened higher albeit fizzles ou0t quickly to touch the intraday low of 0.7124.

At the time of writing,  AUD/USD is trading at 0.7127, down 0.28% for the day.

AUD/USD daily chart

On the daily chart, the pair has been under constant selling pressure, after making the high of 0.7599 on July 6. The bearish slopping line acts as a barrier for the bulls.

A sustained move below intraday’s low could bring back levels last seen in November 2020 back in the picture. The first in line target would be November 4 low at 0.7048.

The Moving Average Convergence Divergence (MACD) indicator reads in the oversold zone. Any downtick in the MACD would amplify the selling toward the psychological 0.7000 mark.

Alternatively, if price moves higher then it could test the 0.7190 and the 0.7230 horizontal resistance levels.

Next, the market participants would aim for the August 18 high at 0.72771.

AUD/USD additional levels