Having successfully crossed the 200-DMA burden during the last week, AUDUSD rose to the four-month high on Monday. However, a broad horizontal area between 0.7425 and 0.7440, also comprising the 78.6% Fibonacci retracement of October 2021 to January 2022 downside, challenged bulls. Amid the overbought RSI conditions and a likely caution ahead of RBA Governor Philip Lowe’s speech on late Tuesday, the Aussie pair witnessed a pullback towards the 200-DMA retest, around 0.7320 at the latest. However, January’s peak of 0.7315 and early February’s swing high, close to 0.7250, will challenge the quote’s further weakness before highlighting an upward sloping support line from late January, near 0.7150 at the latest.
That said, the latest rebound eyes the 0.7440 hurdle before challenging October’s swing low near 0.7455. Following that, AUDUSD bulls may aim for the 0.7500 threshold and the 0.7555-65 region, comprising the late 2021 peak and troughs marked during early 2021.
Overall, AUDUSD bulls face a challenging task ahead of this week’s key events, which in turn can allow them to take a breather. However, bears have a long road before taking control.