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  • AUD/USD surrendered a major part of early gains to multi-week tops.
  • The intraday pullback found decent support ahead of 50-hour SMA.
  • The set-up favours bulls and supports prospects for additional gains.

The AUD/USD pair failed to capitalize on its early uptick to five-week tops and started retreating from the vicinity of 61.8% Fibonacci of the 0.7041-0.5509 downfall.

The intraday pullback once again managed to attract some dip-buying ahead of 50-hour SMA, which now seems to act as a key pivotal point for short-term traders.

Meanwhile, technical indicators on hourly charts have eased from the overbought territory and maintained their positive bias on the daily chart, favouring bulls.

Moreover, the recent positive move over the past three weeks or so has been along an ascending trend-channel, which adds credence to the constructive outlook.

Hence, any subsequent fall below the mentioned support, currently around the 0.6370 region, might still be seen as a buying opportunity and help limit the downside.

Below the mentioned support, the pair is likely to accelerate the fall further towards the 0.6335 intermediate support before eventually dropping to the 0.6300 mark.

AUD/USD 1-hourly chart

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Techincal levels to watch