AUD/USD Price Analysis: Bull flag teases run-up to 0.7080

• AUD/USD remains indecisive below 200-HMA inside bullish chart formation.
• RSI, MACD hints at further weakness, 200-HMA guards immediate upside.
• Bulls need validation from 0.6980 resistance, weekly horizontal support tests bears.

AUD/USD retreats to 0.6960 while portraying sluggish moves inside a short-term bull flag. That said, the Aussie pair recently eased from the 200-HMA during Wednesday’s Asian session.

Given the lower high in RSI (14) backing the latest weakness in the AUD/USD prices, as well as the bearish MACD signals, the quote is likely to remain depressed inside a flag, currently between 0.6940 and 0.6980.

It’s worth noting that the 23.6% Fibonacci retracement level of August 01-05 declines, near 0.6910, could test the AUD/USD bears after 0.6940. However, a one-week-old horizontal area near 0.6885 might restrict the Aussie pairs’ further downside.

On the contrary, the 200-HMA level near 0.6965 guards the quote’s immediate recovery.

Following that, the stated flag’s upper line, close to 0.6980 by the press time, holds the key to the AUD/USD pair’s rally.

During the rise, the Aussie pair may take a breather around tops marked on Monday and on August 01, near 0.6995 and 0.7045-50 in that order, ahead of fueling the run-up towards the theoretical target surrounding 0.7080.

AUD/USD: Hourly chart

Trend: Pullback expected