The AUD/USD is expected to fall further below 0.7500 due to a bear cross on the 1H chart.
The bears are also aided by a downward breakout of the falling wedge pattern.
The oversold zone is probed by the RSI, allowing for additional downside.
As the US dollar continues to garner bids on heightened safe-haven demand, courtesy of escalating tensions over the Delta covid strain, the AUD/USD is extending its fall below 0.7500, trading at its lowest levels in six months.
Given the bearish fundamentals, the Australian dollar has broken through the falling trendline support around 0.7481 on the hourly chart.
A close below the latter on an hourly basis will confirm a bearish breakout from a falling wedge formation, allowing for a test of the psychological 0.7450 support.
The Relative Strength Index (RSI) is currently exploring oversold territory at 29.59, indicating that there is some downward space.
A bear crossing, represented by the 100-hourly moving average (HMA) piercing the 200-hourly moving average (HMA) from above, lends support to the downward trend.
Alternatively, the spot might bounce back to 0.7495, the falling trendline resistance. At that level, the bearish 21-HMA coincides.
If the recovery accelerates, a test of the downward-sloping 50-HMA at 0.7510 could be imminent./n
