Technical Analysis: AUD/USD’s positive outlook remains fragile in the longer term

The Australian Dollar trades weaker on the day. The bullish outlook of the AUD/USD pair seems vulnerable as it hovers around the key 100-day Exponential Moving Average (EMA) on the daily chart. The pair could resume its downside journey if it crosses below the key EMA, as mentioned. Additionally, the 14-day Relative Strength Index (RSI) holds below the 50-midline, indicating that further downside cannot be ruled out for the time being.

The key support level for AUD/USD will emerge at the 0.6580-0.6585 region, portraying the confluence of the 100-day EMA and the lower limit of Bollinger Band. A decisive break below this level could see a drop to 0.6510, a low of March 22. The additional downside filter to watch is 0.6465, a low of May 1, and finally, the psychological level and a low of April 17 at 0.6400.

On the upside, the immediate resistance level is seen at 0.6688, the upper boundary of the Bollinger Band. Further north, the next upside target is located at 0.6715, a high of May 16. The next hurdle to watch is 0.6760, a high of January 4.