- AUD / USD returns initial gains after Australian CPI data and falls to new daily lows.
- The bearish candlestick pattern and bearish indicators suggest further consolidation from recent gains.
AUD / USD has returned the initial gains made following the release of the Australian CPI data better than expected and has fallen to fresh daily lows around the 0.7730 region.
In doing so, the pair has drawn a bearish evening star candle on the 1 hour chart, which in turn joins the weakening of the MACD and RSI and holds hope for the AUD / USD bears.
However, the 200 hourly SMA, now at 0.7725, is likely to offer decent support before targeting the monthly low around 0.7640. The round level of 0.7700 and the January 18 low near 0.7660 also acts as intermediate support.
On the other hand, a clear break from the recent high near 0.7765 would negate the bearish pattern and resume the bullish momentum targeting a fresh multi-month high above the round 0.7800 level.
However, the monthly high near 0.7820 and the January 21 peak around 0.7785 may put the AUD / USD bulls to the test before updating to the highest level since April 2018.
AUD / USD 1 hour chart
AUD / USD technical levels
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