AUD/USD Price Analysis: Rejected at 50-day SMA

AUD/USD now trades near 0.7588, having failed to establish a foothold above the 50-day Simple Moving Average (SMA) at 0.7609. 

The rejection at the 50-day SMA comes a day after the pair failed to re-enter the channel pattern on the daily chart, reinforcing the bearish breakdown confirmed on Monday. 

That, alongside a below-50 or bearish reading on the Relative Strength Index, the descending 5- and 10-day SMAs, indicates scope for a drop to deeper support at 0.7504 (38.2% Fib retracement of Nov-Jan rally). 

A close above the 10-day SMA at 0.7646 is needed to invalidate the bearish setup. 

Daily chart

Trend: Bearish

Technical levels