The AUD/USD pair is sharply down for a second consecutive day, and the risk of a bearish continuation has increased with the pair below 0.6930. In the daily chart, technical indicators head firmly south and are en route to pierce their midlines, reflecting increased selling interest. However, the pair keeps developing above a bullish 20 SMA, which crossed above the 200 SMA, providing dynamic support at around 0.6840. The 4-hour chart, on the other hand, shows that the pair is bouncing from around a mildly bullish 100 SMA while technical indicators recover from their intraday lows, still within negative levels. Overall, the downside seems limited, despite the pair developing below a bearish 20 SMA. A recovery beyond the aforementioned 0.6930 level should put bulls back in control of the pair.
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