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AUD/USD rebounds from 0.6865-70 support confluence to consolidate biggest daily loss in two weeks.
Convergence of head-and-shoulders’ neckline, two-month-old ascending trend line challenges bears.
Buyers need validation from 21-DMA to retake control.
AUD/USD grinds near intraday high surrounding 0.6915 as it reverses the losses post Australian employment data release during early European morning on Thursday.
In doing so, the Aussie pair portrays a recovery move from the 0.6865-70 support confluence that encompasses the lower line of the six-week-old head-and-shoulders (H&S) bearish chart pattern and a two-month-old ascending trend line.
It’s worth noting, however, that the bearish MACD signals and the steady RSI (14) line join the Aussie pair’s sustained trading below the 21-DMA to challenge the bullish bias unless the quote rises past the immediate DMA hurdle surrounding the 0.7000 psychological magnet.
Even so, the weekly near 0.7030 and the monthly peak of 0.7157 could challenge the AUD/USD bulls afterward.
In a case where the AUD/USD buyers remain in the driver’s seat past 0.7157, the May 2022 high near 0.7285 will be on their radars.
On the contrary, a successful downside break of 0.6865 key support level is necessary for the Aussie pair bears to keep the reins.
Following that, the 200-DMA surrounding 0.6800 and the late 2022 low near 0.6630 may act as validation points during the theoretical south-run targeting the 0.6500 round figure.
Overall, AUD/USD remains bearish but the downside move needs validation from 0.6865.
Trend: Limited recovery expected
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