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  • AUD/USD again fails to keep gains above 0.70. 
  • Technical charts indicate overbought conditions and scope for a pullback. 

AUD/USD is currently trading near 0.6977, having faced rejection at 0.7003 in early Asia. 

The buyers have failed for the second straight trading day to keep gains above the 0.70 mark. While the currency pair clocked a multi-month high of 0.7013 on Friday, it closed at 0.6968. 

The repeated rejection at 0.70 is indicative of bull fatigue and validates the above-70 or overbought reading on the 14-day relative strength index. 

Meanwhile, the bearish divergence of the 4-hour chart relative strength index also indicates bullish exhaustion and scope for a pullback. 

The pair could fall back to the ascending 5-day simple moving average (SMA) support at 0.6940. A violation there would expose the psychological level of 0.69. 

A strong bounce from the 5-day SMA could yield another re-test of 0.70. 

4-hour chart

Trend: Bearish

Technical levels