AUDUSD had been staging an impressive rebound, trading within an upward sloping channel since mid-October. Nevertheless, the pair experienced a moderate pullback in the short term, with the price escaping its pattern to the downside to find strong support at the 200-day simple moving average (SMA).
The momentum indicators currently suggest that bearish forces have gained total control. Specifically, the MACD histogram is softening below both zero and its red signal line, while the RSI is pointing upwards but remains well beneath its 50-neutral mark.
Should selling pressures intensify further, the pair could decline to retest the 200-day SMA, currently at 0.6794. Sliding beneath that zone, the bears might aim for the January low of 0.6687 before the December bottom of 0.6628 comes under examination. Even lower, further retreats could come to a halt at the 0.6546 barrier.
On the flipside, bullish actions might encounter initial resistance at the 0.6920 hurdle. Conquering this barricade, the pair could ascend towards 0.7030 or higher to challenge the recent trend rejection point of 0.7157. Should that obstacle fail, the June high of 0.7282 may appear on the radar.
Overall, AUDUSD seems to be experiencing some weakness after its medium-term bullish pattern broke to the downside. However, there is room for recovery in the case that the pair bounces off the 200-day SMA.
