AUD/USD Price analysis: Renews two-year low as bears poke four-month-old support around 0.6500

• AUD/USD remains pressured at 29-month low, retreats of late.
• Descending support line from early May, oversold RSI restricts immediate downside.
• Seven-week-old previous support line guards immediate recovery moves.
• May 2020 low can lure sellers on defying the bearish channel formation.

AUD/USD reverses the early Asian session corrective bounce on Monday as it drops back towards 0.6500, around 0.6515 by the press time. In doing so, the Aussie pair pokes the support line of a 4.5-month-old descending trend channel.

Given the oversold RSI (14) and the nearness to the key support, around 0.6500 by the press time, the Aussie pair may witness a corrective bounce.

The recovery moves, however, remain elusive until crossing a downward sloping trend line from August 05, previous support around the 0.6600 threshold.

Even so, the support-turned-resistance line from July, close to 0.6705 at the latest, could challenge the AUD/USD buyers before giving them control.

Alternatively, a clear downside break of the 0.6500 support could quickly fetch the Aussie pair towards the May 2020 lows near 0.6370.

Following that, the 78.6% Fibonacci Expansion (FE) of April-August moves, near 0.6360, could challenge the AUD/USD bears.

Overall, AUD/USD remains on the bear’s radar but the downside room appears limited.

AUD/USD: Daily chart

Trend: Bearish