• The pair extended last week’s rejection slide from the very important 200-day SMA and the selling pressure intensified on Wednesday following the release of softer Aussie CPI figures.
• The pair lost ground for the fifth consecutive session and a sustained break through a short-term ascending trend-line, near the 0.7100 mark, was seen as a key trigger for bearish traders.
• Despite a sharp intraday slump to the lowest level since March 11, technical indicators on the daily chart are still far from being in the oversold territory and support prospects for further downside.
• Hence, any attempted recovery towards the 0.7050-60 horizontal zone seems more likely to get sold into and bears might now target an eventual drop towards the key 0.70 psychological mark.
AUD/USD daily chart