AUD/USD Price Analysis: Eyes 0.7475 as sell-off extends below 200-DMA

• AUD/USD extends sell-off after opening Friday below 200-DMA.
• The next downside target is seen at 0.7475, descending trendline support.
• RSI pokes the oversold territory, with extra room for additional losses.  

After a brief bounce in the Asian trades, AUD/USD has resumed the downside towards 0.7550, reaching the lowest levels since December 2020.

The aussie shrugs off Westpac’s expectations of the RBA raising the Official Cash Rate (OCR) in early 2023, as the renewed uptick in the US dollar weighs on the spot.

The hawkish Fed’s surprise continues to keep the buoyant tone intact around the greenback while exerting relentless downward pressure on the most majors, including the aussie dollar.

From a near tern technical perspective, the pain in the aussie is exacerbating on a sustained weakness below the 200-Daily Moving Average (DMA) at 0.7554.

The next downside target is seen at the four-month-old descending trendline support at 0.7475.

The Relative Strength Index (RSI) points south, probing the oversold territory, currently at 30.92, which suggests there is room for the bears to flex their muscles.

AUD/USD: Daily chart

Only a daily closing above the 200-DMA could call for a temporary reversal, with the bulls likely to face stiff resistance at the horizontal (orange) trendline hurdle at 0.7589.

The aussie will then look to recapture the 0.7600 mark.

AUD/USD: Additional levels