- AUD / USD makes a corrective pullback as the short-term support line tests the bears.
- Sellers are hoping to confirm a double top pattern amid a bearish MACD.
- The bulls need to hit a new monthly high to regain control.
The AUD / USD pair recovers some of the losses produced after the publication of the Australian CPI as it tests to bounce off a two-week support line. At the time of writing, the pair is shedding 0.27% on the day, trading around 0.7744.
Although immediate support tests AUD / USD sellers, the bearish MACD and a bearish double-top pattern on the four-hour chart point to the weakness of the pair.
As a result, further selling should take place below the immediate support line near 0.7740 to end the bearish pattern with a downward move towards the 0.7695–90 area.
While a sustained break below 0.7690 would theoretically drag AUD / USD prices towards the monthly low of 0.7531, an ascending trend line from April 1 could offer intermediate support for the bulls.
On the other hand, the recovery move may point to the round 0.7800 level, but higher up, the 0.7820 level becomes the key hurdle to highlight.
If AUD / USD holds firm above 0.7820, the March high of 0.7850 will regain market attention.
AUD / USD 4-hour chart
AUD / USD technical levels
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