“¢ The pair built on the overnight bounce from sub-0.7000 level – the lowest level since early Jan., and remained well bid through the mid-European session on Friday.
“¢ The steady recovery has been along a short-term ascending trend-channel on the 1-hourly chart and was supported by some short-covering amid oversold conditions.
“¢ Given the recent sharp rejection slide from the very important 200-day SMA, the mentioned channel constitutes towards the formation of a bearish continuation flag chart pattern.
“¢ Technical indicators maintained their bearish bias on the daily chart and have also recovered from the oversold territory, suggesting some fresh selling to emerge at higher levels.
“¢ Traders, however, seemed to wait for the release of US Q1 GDP report and a break through the bearish pattern support before positioning for further depreciating move.
AUD/USD 1-hourly chart
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