AUD/USD Price Analysis: Bears seize control near the lowest level since November 2020

• AUD/USD witnessed heavy selling on Tuesday and broke through the 0.7300 support.
• The set-up favours bearish traders and supports prospects for an extension of the slide.
• The next relevant bearish target is pegged near mid-0.7200s ahead of 0.7230 and 0.7200.

The AUD/USD pair continued losing ground through the early North American session and dropped to the lowest level since November 2020, around the 0.7265 region in the last hour.

The risk-off impulse in the market – amid concerns about the COVID-induced global economic slowdown – acted as a tailwind for the safe-haven US dollar. This, in turn, was seen as a key factor that exerted heavy downward pressure on the AUD/USD pair.

Looking at the technical picture, sustained weakness below the 0.7330 horizontal support was seen as a key trigger for bearish traders. A subsequent slide below the previous YTD lows further aggravated the selling bias surrounding the AUD/USD pair.

Meanwhile, technical indicators on the daily chart are holding deep in the negative territory and are still far from being in the oversold zone. This validates the bearish breakdown and supports prospects for an extension of the ongoing downfall.

Hence, some follow-through slide towards mid-0.7200s, en-route the next relevant support near the 0.7230-25 region and the 0.7200 mark, remains a distinct possibility. A convincing break below should pave the way for a further depreciating move.

On the flip side, any attempted recovery move might now confront stiff resistance and is more likely to run out of steam near the 0.7300 mark. This, in turn, should cap the AUD/USD pair near the 0.7330 strong horizontal support breakpoint.

AUD/USD daily chart

Technical levels to watch