AUD/USD picks up bids to 0.7110 in a run-up to consolidate the day’s losses amid a sluggish trading session during early Tuesday.
It should, however, be noted that the pair’s failures to cross 50-SMA the previous day joins the looming crossover of the stated SMA above 21-SMA, to back the bearish bias towards a horizontal area comprising multiple lows since mid-May.
Though, a clear downtrend below the 0.7700 threshold becomes necessary for the pair to aim for monthly horizontal support near 0.7690-85.
In a case where AUD/USD remains pressured below 0.7685, it becomes vulnerable to attack the monthly bottom, also the lowest since April 14, surrounding 0.7645.
Alternatively, receding bearish bias of MACD signals another attempt to cross the key SMA confluence near 0.7725.
The same, if confirmed, will trigger recovery moves targeting the month’s top close to the 0.7800 round figure.
Overall, AUD/USD traders should wait for confirmation of a bearish cross to take fresh short positions, until then odds of the quote’s corrective pullback targeting 0.7725 can’t be ruled out.
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