AUD/USD is trading at 0.6976 (-0.58%), testing critical support as the pair extends its downtrend below both the 20-day (0.7122) and 50-day (0.7092) SMAs. The price action confirms bearish momentum, with today’s low of 0.6978 just 2.4 pips above the current rate. The 20-day dynamic channel is descending, with resistance at 0.7069 (93.5 pips above) and support at 0.6978 (2.4 pips below). The 50-day channel shows a conflicting ascending slope, but the immediate technicals favor the shorter-term bearish structure.

Static support S1 at 0.6978 (10.8 pips below) is the nearest floor, having been tested twice previously. A break here could accelerate losses toward S2 at 0.6907 (82.2 pips lower). Resistance is concentrated at R1 (0.7035, 59.9 pips above), aligning with today’s high of 0.7029. The RSI at 17.9 signals extreme oversold conditions, suggesting potential for a short-covering bounce, though the downtrend remains dominant until SMA-20 is reclaimed.

The immediate outlook hinges on whether 0.6978 holds as support. A close below would confirm bearish continuation, targeting 0.6907, while a rebound above 0.7020 (pivot) could trigger a squeeze toward 0.7069 resistance. Watch for US session liquidity to dictate near-term direction, with the Fed’s preferred inflation data (PCE) due tomorrow as the next catalyst for USD momentum.