AUD/USD Price Analysis: Moves toward 0.7200 inside downward channel

• AUD/USD trades lower on Friday in the early European session.
• The pair persistently moves inside the downward channel starting from September 3.
• A break of  0.7200 would expose more downside risk for AUD/USD.

AUD/USD fails to extend the previous session's momentum on Friday. The pair fell from the high of 0.7258 composed of more than 80-pips movement in the overnight session. At the time of writing, AUD/USD is trading at 0.7208, down 0.27% for the day.

AUD/USD daily chart

On the daily chart, the AUD/USD pair has been moving inside the downside channel after posting high at 0.7478 on September 3. In addition to that, the bearish trend gets its conviction once the price skids below the 21-day Simple Moving Average (SMA) at 0.7330. Having said that, a close below 0.7200 would pave the way for the 0.7170 and 0.7145 horizontal support levels.
The Moving Average Convergence Divergence (MACD) trades below the midline with a bearish crossover. Any downtick in the MACD would open the gates for the low of August 20 at 0.7105.

Alternatively, if the price sustained above the intraday high it could move back to the 0.7255 horizontal resistance level followed by Tuesday's high of 0.7312. A daily close above the 21-day Simple Moving Average (SMA) at 0.7326 would make the higher possibility of the 0.7350 horizontal resistance level.

AUD/USD additional levels