It is testing 0.6650 near the lower limit of the descending channel

• The AUD/USD price is testing the lower boundary of the descending channel around the 0.6440 level.
• The 14-day RSI is falling below the 50 level, confirming the ongoing bearish trend for the pair.
• The immediate barrier appears at the 50-day EMA at 0.6675.

AUD/USD extends losses for a second straight day, trading around 0.6650 during European hours on Monday. Daily chart analysis shows that the pair is descending along the lower boundary of the descending channel, suggesting a strengthening bearish bias.

Additionally, the 14-day Relative Strength Index (RSI) breaks below the 50 level, confirming the continued bearish trend for the AUD/USD pair.

However, daily chart analysis also indicates that the 9-day exponential moving average (EMA) is positioned above the 50-day EMA, which is usually interpreted as a short-term bullish signal. This suggests that the recent price action is outpacing the long-term trend.

On the downside, AUD/USD is targeting the lower limit of the descending channel around the 0.6440 level. A break below this level could strengthen the bearish trend and lead the pair to navigate in the region around the rebound support at 0.6575.

In terms of resistance, the immediate barrier appears at the 50-day EMA at 0.6675, followed by the nine-day EMA at 0.6715. A break above the latter could weaken the bearish trend and support the AUD/USD pair to test the upper limit of the descending channel around the 0.6750 level.

A break above the descending channel could extend the upside and lead the pair to explore the region around its seven-month high of 0.6798 reached on July 11.

AUD/USD: Daily chart