AUDUSD has been staging an impressive rebound after finding its feet at the 32-month low of 0.6169 in mid-October. Nevertheless, the pair has experienced a moderate pullback in the near term, with its latest advance getting rejected at a fresh five-month high of 0.7062.
The momentum indicators currently suggest that bullish forces are waning but retain control. Specifically, the MACD histogram is softening but continues to hold above both zero and its red signal line, while the RSI is pointing downwards in the positive territory.
Should selling pressures intensify further, the pair could decline towards the recent support of 0.6857. Sliding beneath that zone, the bears could aim for the January low of 0.6687 before the December bottom of 0.6628 comes under examination. Even lower, further retreats could cease at the 0.6546 barrier.
On the flipside, bullish actions might propel the price towards the recent rejection point of 0.7062. Conquering this barricade, the pair could extend its recovery to test the August peak of 0.7136. Breaking above the latter, the June high of 0.7282 could come under examination.
Overall, AUDUSD seems to be experiencing some weakness after its medium-term advance ran out of steam. However, a break above the recent rejection region could signal the continuation of the pair’s recovery.