AUD/USD Price Analysis: Bears flirt with key support around 0.7200

• AUD/USD reverses early Asian session gains, extends previous day’s pullback from six-week top.
• Australia’s upbeat TD Securities Inflation fails to favor bulls ahead of Tuesday’s RBA.
• 200-SMA acts as an additional downside filter, bulls need validation from 0.7260.

AUD/USD remains pressured, after an initial bounce, as bears attack an upward sloping trend line from early May during Monday’s Asian session. That said, the quote holds lower ground near 0.7200 by the press time.

In addition to the key support line, upbeat figures of Australia’s TD Securities Inflation for May, up from -0.1% to 1.1% MoM, also challenge the pair sellers.

However, downbeat RSI and MSCD signals join the Aussie pair’s failure to cross the 0.7260 hurdle comprising a downward sloping trend line from April 12 and a 1.5-month-old horizontal area, keeping the AUD/USD buyers cautious.

It’s worth noting that the 200-SMA level of 0.7100 acts as an additional downside filter, a break of which could direct the quote towards early May’s swing low near 0.7030.

On the contrary, an upside clearance of the 0.7260 hurdle needs validation from May’s high surrounding 0.7270 to convince AUD/USD bulls to attack the late April top close to 0.7460.

To sum up, AUD/USD grinds inside the short-term key technical levels with bearish bias gaining more acceptance.

AUD/USD: Four-hour chart

Trend: Further weakness expected