The AUD/USD currency pair is trading lower as bears continue to dominate the market.
If price decisively breaks 0.7550, there will be more negative danger.
Aggressive directional bets should be avoided if the MACD is oversold.
AUD/USD is down for the second day in a row in early European trading hours on Tuesday. The pair reached an intraday high of 0.7571, but the upward momentum was lost.
The Australian dollar is currently trading at 0.7558, down 0.16 percent on the day.
The pair had been trading in a wider range of 0.7610 and 0.7800 on the daily chart before breaking out on June 17.
The pair’s price behavior below the session’s low of 0.7578 could trigger a new round of selling.
The low of June 23 in the 0.7535 range would be the first target for the bears.
The oversold Moving Average Convergence Divergence (MACD) indicator encourages bears to expect more declines toward the 0.7500 horizontal support level.
The market’s next target would be the June 18 low of 0.7477.
Alternatively, due to overstretched selling conditions, any uptick in the MACD could result in a significant upside surge. Bulls in the AUD/USD would try to break over the 0.7593 high set on June 24.
A daily closure above the crucial psychological level of 0.7600 could halt market declines.
The AUD/USD pair would then reach a high of 0.7646 on June 17, followed by a horizontal resistance level of 0.7700.
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