Repeated failure at key Fib hurdle is cause for concern for bulls

  • AUD/USD risks falling to the 50-day MA support in the next few hours. 
  • The daily chart shows repeated failure at key Fib level of 0.6880. 

AUD/USD is looking heavy, having repeatedly failed to take out a key Fibonacci resistance level in the last few days. 

The currency pair picked up a bid below 0.67 on Sept. 3, but the ensuing rally ran out of steam near 0.6880 (50% Fib R of 0.7082/0.6677) last week. 

Notably, the pair failed to close above that Fibonacci resistance for the fourth straight day on Monday. Also, the 4-hour chart is reporting a bearish divergence of the relative strength index. 

Hence, a pullback could be in the offing, possibly to the 50-day moving average (MA) support, currently at 0.6943. 

As of writing, the pair is trading at 0.6861, representing a 0.05% drop on the day, having hit a high of 0.6870 earlier today. 

Daily chart

Trend: Bearish

Technical levels