AUD/USD Price Analysis: Fails to justify weekly bearish channel breakout around 0.6900

• AUD/USD retreats from intraday high as traders revisit the upper line of weekly falling channel.
• Monthly horizontal support adds to the downside filters, oversold RSI tests bears.
• MACD teases bulls while suggesting corrective pullback towards 200-HMA.

AUD/USD pares intraday gains around 0.6900, the first in six days, as the quote fails to extend the short-term channel breakout heading into Wednesday’s European session.

The Aussie pair’s latest weakness appears doubtful amid oversold RSI (14). Also likely to challenge the AUD/USD sellers is the resistance-turned-support line of the one-week-old descending trend channel, around 0.6900 by the press time.

Even if the quote drops before 0.6900, a five-week-old horizontal area surrounding 0.6850-40 will be a crucial support to watch for the pair bears, a break of which could direct prices towards the mid-June 2020 low near 0.6775.

Meanwhile, the Aussie pair’s further upside may aim for the broad resistance area surrounding 0.7037-52, including multiple levels marked since May 11.

Following that, the 200-HMA level of 0.7075 appears the last defense of the AUD/USD bears.

In a case where the Aussie pair rises past 0.7075, the monthly high of 0.7283 will gain the market’s attention.

Overall, AUD/USD holds onto the recovery bias, despite the latest pullback, ahead of the key Federal Open Market Committee (FOMC).

AUD/USD: Hourly chart

Trend: Further recovery expected