Early on Wednesday morning in Europe, the AUD/USD exchange rate accepts bids to retest the intraday low of 0.6655. Recently, it seems that the AUD/USD bears have gained the upper hand due to the Aussie pair’s inability to extend the corrective bounce off the 38.2% Fibonacci retracement of the November-December upswing beyond the 200-SMA.
In contrast, the 200-SMA resistance level surrounding the round number of 0.6700 prevents the AUD/USD pair from making a quick comeback.
The support-turned-resistance line from November 21 will then serve as the final line of defense for the sellers of the AUD/USD pair, perhaps near 0.6740 at the earliest.
Overall, the AUD/USD pair is poised to hit a fresh monthly low, but downward movement past 0.6580 has little room to move south.
