AUD/USD Price Analysis: Drops back towards 200-SMA near 0.7200

• AUD/USD sellers attack intraday low, snaps two-day uptrend.
• Overbought RSI, failure to refresh monthly top hints at a further weakness.
• Sellers remain cautious above 200-SMA, six-week-old horizontal area can lure bulls past-0.7225.

AUD/USD consolidates recent gains around 0.7200, down 0.20% intraday after rising for two consecutive days. In doing so, the Aussie pair eases from the highest levels in a fortnight, also from an inch lower to the monthly peak.

In addition to refreshing the multi-day top, overbought RSI conditions also favor the AUD/USD pair’s pullback moves.

However, the previous resistance line from November 30 and 200-HMA restricts the pair’s immediate downside above 0.7190.

Following that, AUD/USD sellers will brace for the horizontal support line close to 0.7090, a break of which will recall the 0.7030 and the yearly bottom surrounding 0.6990 to the chart.

On the flip side, a clear upside break of the monthly high near 0.7225 will propel the AUD/USD prices towards a horizontal area stretched from November 11 near 0.7295-7300.

In a case where the pair buyers keep reins past 0.7300, the mid-November swing high close to 0.7370 will be in focus.

AUD/USD: Four-hour chart

Trend: Pullback expected