AUD/USD Technical Analysis: Hammered down to near 3-week lows, below 0.6900 confluence support

• AUD/USD remained under some heavy selling pressure for the fourth straight session.
• The bearish momentum took along some stops placed near 200-day SMA/50% Fibo.
• Highly oversold conditions on hourly charts warrant some caution for bearish traders.

The AUD/USD pair extended its recent pullback from multi-month tops – levels beyond the key 0.70 psychological mark – and remained under some intense selling pressure for the fourth consecutive session on Tuesday.

The pair weakened back below the 0.6900 handle, hitting near three-week lows during the early part of the European trading action. The bearish momentum took along some short-term trading stops near the very important 200-day SMA.

The mentioned region coincided with the 50% Fibonacci level of the 0.6754-0.7032 recent positive move. Failure to defend the confluence support might be seen as a key trigger for bearish traders, setting the stage for further weakness.

Meanwhile, technical indicators on the daily chart have been losing positive traction and reinforce the bearish bias. However, oscillators on hourly charts are already flashing oversold conditions and warrant some caution.

Hence, it will be prudent to wait for some near-term consolidation or a modest rebound to the 0.6900 confluence support breakpoint before placing any fresh bearish bets for a slide towards the 0.6860-50 region (61.8% Fibo.).

AUD/USD daily chart