Off falling channel support towards regaining 0.7300

AUD/USD snaps three-day downtrend, stays inside bearish chart pattern.
50% Fibonacci retracement, channel’s resistance challenge bulls ahead of 200-SMA.
Monthly horizontal support adds to the downside filters.

AUD/USD refreshes intraday high to 0.7277, up 0.30% intraday around 0.7275 by the press time of the pre-European session on Tuesday.

In doing so, the Aussie pair rebounds from late August lows, as well as support line of a fortnight-old descending trend channel amid a gradually firming RSI line.

However, AUD/USD buyers remain unconvinced below a confluence of the stated channel’s resistance line and 50% Fibonacci retracement of late August to early September upside, around 0.7290.

Also acting as upside filters is the 0.7300 threshold and the 200-SMA level surrounding 0.7315.

Meanwhile, 61.8% Fibonacci retracement level of 0.7247 restricts immediate downside ahead of short-term horizontal support near 0.7220.

Even if the AUD/USD bears keep reins below 0.7220, the 0.7200 round figure, also comprising the stated channel’s support line, will challenge the further downside.

To sum up, AUD/USD prints corrective pullback but the bulls remain cautious unless crossing 0.7315.

AUD/USD: Four-hour chart

Trend: Further recovery expected

 

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