AUD/USD Price Analysis: Recovery remains elusive below 0.6690
- AUD/USD snaps four-day downtrend inside one-week-old bearish channel.
- 200-HMA guards immediate recovery even if RSI, MACD suggest further grinding towards the north.
- 61.8% Fibonacci retracement adds to the downside filters, buyers need validation from monthly high.
AUD/USD prints the first daily gain in five around 0.6615 during early Tuesday. In doing so, the Aussie pair rebounds from the support line of a short-term bearish channel while teasing buyers to aim for the 200-HMA.
In addition to the lower line of a one-week-old descending trend channel, the bullish MACD signals and recent improvement in the RSI (14) also favor the AUD/USD buyers.
However, the 200-HMA and the upper line of the stated channel, respectively near 0.6660 and 0.6690, appear immediate challenges for the AUD/USD bulls to tackle before retaking control.
Even if the quote rises past 0.6690, the 0.6700 threshold and the monthly high surrounding 0.6800 could question the upside momentum before humbly letting the buyers in.
On the flip side, a downside break of the aforementioned channel’s support, near 0.6575 at the latest, could quickly drag the quote towards the 61.8% Fibonacci retracement level of the pair’s November 10-15 upside, near 0.6545.
Following that, the 0.6500 and the 0.6400 round figures could lure the AUD/USD pair sellers before highlighting the November 10 swing low surrounding 0.6385.
Overall, AUD/USD is likely to remain bearish unless defying the descending trend channel formation.
AUD/USD: Hourly chart
Trend: Limited upside expected