AUD/USD Price Analysis: Weekly ascending channel tests bears above 0.7000

• AUD/USD fades rebound from the three-day-old bullish channel’s support.
• Sustained trading beyond 200-HMA keep buyers hopeful but horizontal area from May 06 appears tough nut to crack.
• Descending RSI, multiple failures to cross nearby horizontal resistance keep sellers hopeful.

AUD/USD drops back towards the 0.7000 threshold amid the initial European session on Wednesday.

The Aussie pair’s latest weakness could be linked to the market risk-off mood, as well as sustained trading below a horizontal area comprising multiple levels marked since May 06, around 0.7040-65.

Given the downbeat RSI adding strength to the bearish bias concerning the AUD/USD pair, sellers will be waiting for a clear downside break of the stated channel’s lower line, near 0.7000 by the press time, to retake control.

Following that, a downward trajectory towards the 200-HMA and the monthly low, respectively near 0.6965 and 0.6830, will be in focus.

Alternatively, a clear upside break of the 0.7065 hurdle will quickly trigger the pair’s run-up targeting the 0.7100 resistance confluence, including the upper line of the aforementioned channel and 61.8% Fibonacci retracement of May 04-12 downside.

In a case where AUD/USD prices rise beyond 0.7100, buyers won’t hesitate to challenge the monthly peak close to 0.7265.

AUD/USD: Hourly chart

Trend: Further weakness expected