AUD/USD pares intraday losses at the highest levels in 12 days.
Sluggish RSI, MACD signals also favor pullback moves targeting previous resistance from mid-December.
200-SMA adds to the downside filters, bulls need validation from previous monthly high to keep the reins.
AUD/USD retreats from the short-term key resistance during Monday’s Asian session as bulls take a breather after a three-day uptrend. In doing so, the Aussie pair steps back from a three-week-old horizontal resistance amid nearly overbought RSI and sluggish MACD signals.
It’s worth noting, however, that the previous week’s successful upside break of a descending trend line from November 13, close to 0.6780 by the press time, keeps the AUD/USD buyers hopeful.
Even if the quote breaks the 0.6780 support, the 200-HMA level surrounding 0.6725 acts as the last defense of the AUD/USD buyers before giving control to the Aussie pair sellers.
In that case, the Aussie pair bears could quickly aim for the previous monthly low near 0.6690.
On the contrary, a successful upside break of the three-week-old horizontal resistance area surrounding 0.6820-25 could propel the pair towards the previous monthly high surrounding 0.6895.
Following that, the pair’s successful trading beyond the 0.6900 round figure, as well as September’s high near 0.6920, becomes necessary for the AUD/USD bulls to aim for an August 2022 high of around 0.7135.
Overall, AUD/USD remains on the buyer’s radar but the upside room appears limited.
AUD/USD: Hourly chart
Trend: Pullback expected