AUD/USD Price Analysis: Grinds higher past 0.6980 support confluence

• AUD/USD remains mildly bid despite retreating from the daily top.
• Convergence of 100-HMA, two-day-old support line restrict immediate downside.
• 200-HMA, 61.8% Fibonacci retracement level join overbought RSI to challenge upside momentum.

AUD/USD stays defensive above 0.7000, up 0.21% intraday as it retreats from the daily top during early Thursday in Europe.

The Aussie pair’s latest weakness could be linked to the nearly overbought RSI conditions, as well as failure to cross the 50% Fibonacci retracement (Fibo.) of June 08-14 downside.

However, the quote remains above the 0.6980 support confluence, including the 100-HMA and an upward sloping trend line from Tuesday, which in turn tests sellers.

In addition to the 0.6980 level, the previous resistance line from June 08, near 0.6945, will also challenge the AUD/USD bears before directing them to the 0.6850-55 support area.

On the flip side, the 50% Fibo. level surrounding 0.7040 lures the intraday buyers of the AUD/USD pair. Though, a confluence of the 200-HMA and 61.8% Fibonacci retracement, around 0.7085, appears a tough nut to crack for the bulls.

Should the quote rises past 0.7085, the last Friday’s high near 0.7140 and the monthly top surrounding 0.7230 will be in the spotlight.

To sum up, AUD/USD prices remain pressured despite the latest rebound. However, the fresh downside needs validation from 0.6980.

AUD/USD: Hourly chart

Trend: Limited upside expected