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  • AUD/USD consolidates the pullback from THE 0.7340 critical barrier.
  • Bearish bias remains intact amid bearish crossover on 1D chart.
  • A daily closing below 0.7266 to validate the renewed downside bias.

AUD/USD is trying hard to extend Monday’s advance while trading below 0.7300 so far this Tuesday.

The spot is consolidating the sharp pullback from two-month tops of 0.7340 amid risk-on action in the Asian equities, as traders digest the Pfizer and Eli Lilly vaccine news.

Meanwhile, fresh declines in the US dollar alongside Treasury yields is offering some support to the AUD bulls, although the bulls struggle to take on the 0.7300 level.

Technically, the major appears vulnerable and a retest of the critical horizontal barrier (orange) at 0.7340 looks far-fetched amid a bearish crossover on the daily chart.

The 100-daily moving average (DMA) and pierced through the 21-DMA from below, charting a bearish crossover. A break above the aforesaid key hurdle could open doors towards the 0.7400 level.

However, the 14-day Relative Strength Index (RSI) has turned flat around 63.27 but remains well within the bullish territory, suggesting that the pair could drop before resuming Monday’s advance.  

Alternatively, a daily closing below the intermittent lows of 0.7266 could validate the near-term bearish bias. The next relevant support is then seen at Friday’s low of 0.7238, below which the 50-DMA support at 0.7176 could come into play.

AUD/USD: Daily chart

AUD/USD: Additional levels