AUD/USD Price Analysis: Bulls need 0.7190 breakout to retake controls

• AUD/USD remains sidelined after stepping back from two-week top.
• 10-DMA restricts immediate declines, 10-week-old horizontal area challenges buyers.
• Bullish MACD, RSI rebound from oversold territory favor upside momentum.

AUD/USD remains indifferent as global markets brace for all-important US inflation data during early Friday.

In doing so, the risk barometer pair seesaws between short-term key technical levels amid recently bullish bias, as portrayed by upbeat MACD signals and the firmer RSI line.

A clear upside break of 10-DMA and descending trend line from early November keep AUD/USD buyers hopeful. However, fresh buying seems to wait for a new weekly high, while also crossing the 21-DMA level surrounding 0.7190.

Following that, AUD/USD prices could aim for 0.7230 and early November’s swing low near 0.7275-80 but a convergence of the 100-DMA and 50-DMA around 0.7315-20 will be a strong resistance to watch afterward.

Meanwhile, pullback moves remain elusive beyond the 10-DMA level of 0.7105 and the previous resistance line near 0.7090, a break of which will open the door for 0.7045 and the 0.7000 support levels.

It’s worth noting that the AUD/USD pair’s weakness past 0.7000 will be challenged by the 0.7000-6990 key support zone, including lows marked during November 2020 and so far during December 2021.

AUD/USD: Daily chart

Trend: Further recovery expected