AUD/USD technical analysis: Fresh 2-week lows and counting, oversold conditions might help limit losses

• The AUD/USD pair remained heavily offered through the mid-European session on Tuesday and weakened farther below mid-0.6900s, hitting fresh two-week lows in the last hour.
• Given the previous session's rejection from the vicinity of the key 0.70 psychological mark, sustained weakness below the 0.6970-65 region was seen as a key trigger for bearish traders.

The mentioned support coincides with 38.2% Fibo. level of the 0.6833-0.7049 recent corrective bounce and a subsequent breakthrough 50% Fibo. level now sets the stage for an extension of the ongoing downfall further towards the 0.6900 round figure mark.

Meanwhile, oscillators on the daily chart have again started gaining negative momentum and reinforce the bearish outlook, albeit extremely oversold conditions on hourly charts might hold traders from placing aggressive bets and turn out to be the only factor limiting deeper losses. 

Hence, it would be prudent to wait for a modest rebound or some near-term consolidation before traders again start positioning for any further near-term depreciating move as the focus now shifts to the Fed Chair Jerome Powell’s scheduled speech later this Tuesday.

AUD/USD 1-hourly chart