AUDUSD had been in a prolonged uptrend since mid-October, generating a clear structure of higher highs and higher lows. Nevertheless, the pair has been experiencing a significant downside correction in the short term, with the price trading within a downward sloping channel after peaking at 0.7157.
The momentum indicators currently suggest that bearish forces are waning but remain in control. Specifically, the MACD histogram has jumped above its red signal line but remains in the negative territory, while the RSI is pointing upwards beneath its 50-neutral mark.
Should selling pressures intensify further, the pair could initially challenge 0.6590 before the 2023 low of 0.6563 comes under examination. If that barrier fails, the bears might aim for the 0.6385 hurdle. Failing to halt there, the pair may descend towards the November bottom of 0.6271.
On the flipside, if the pair edges higher, immediate resistance could be encountered at 0.6715, which overlaps with the upper boundary of the pair's downward sloping channel. Escaping from this bearish pattern, the price could then test the 0.6780 resistance zone before the attention shifts to 0.6920. A break above the latter could open the door for the 0.7030 barricade.
Overall, AUDUSD seems to be experiencing some persistent weakness after its medium-term uptrend came to a halt. Hence, a break above the restrictive channel is needed to shift the technical picture back to neutral.
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