AUD/USD technical analysis: Struggles to find acceptance above 50-day SMA, downside seems limited

• Reviving safe-haven demand benefits the USD and prompts some profit-taking.
• Set-up remains in favour of bullish traders and support prospects for dip-buying.

The AUD/USD pair continued with its struggle to find acceptance above 50-day SMA and for now, seems to have snapped five consecutive days of winning streak. The pair stalled its recovery move from multi-year lows near a resistance marked by 50% Fibo. level of the 0.7082-0.6677 downfall and retreated further on Tuesday.
 
Slightly overbought conditions on the 4-hourly chart seemed to be the only factor prompting some profit-taking amid a slight deterioration in the risk sentiment. Meanwhile, oscillators on the daily chart maintained their bullish bias and support prospects for some dip-buying interest amid growing US-China trade optimism.
 
Hence, it will be prudent to wait for a strong follow-through pullback, possibly back below the previous strong resistance breakpoint near the 0.6800 handle, before confirming that the corrective bounce might have already run out of the steam and positioning for the resumption of the prior bearish trajectory.
 
A sustained move beyond the 0.6875-80 region (50% Fibo. level) should pave the way for an extension of the recent upward trajectory, even beyond the 0.6900 handle, towards testing the next major barrier near the 0.6925 region – 61.8% Fibo. level.

AUD/USD daily chart