AUD/USD Threatening to Overthrow Support

Price action on the daily timeframe of the AUD/USD demonstrates that bears are at the wheel for now.

This follows last week's retest at the underside of breached channel support, extended from the low of $0.6339 and, as you can see, has led the currency pair to confront support at $0.6659 today. Accompanying this support level is a mild Fibonacci cluster, made up of 38.2 and 61.8% Fibonacci retracement ratios.

The Relative Strength Index (RSI) recently ventured south of its 50.00 centreline, action indicating that this market (this timeframe) is experiencing negative momentum: average losses > average gains. This implies further selling could be on the table. Should the unit dethrone current support and open the door for short-term breakout bearish opportunities, the 200-day and 50-day Simple Moving Averages (SMAs) offer immediate (dynamic) support to contend with between $0.6614 and $0.6580 (actually the combination of these two values just formed a Golden Cross), with subsequent bearish flow beyond these values to shine the technical headlights on another layer of support coming in at $0.6502.