The pair retreats slightly after hitting a two-week peak but holds above critical support amid mixed technical signals.
The AUD/USD pair eased from a two-week high of 0.6960 during Tuesday’s Asian session, snapping a three-day winning streak. The pullback lacks strong bearish momentum, suggesting caution before declaring the recent recovery exhausted.
Technical indicators present a mixed outlook. The pair struggles to break above the 38.2% Fibonacci retracement level at 0.6955, while oscillators show conflicting signals. The MACD has turned slightly positive, hinting at modest upside potential, but the RSI near 42 indicates limited directional pressure.
Support levels emerge at the 50% retracement (0.6853) and 61.8% Fibonacci (0.6752), with deeper floors at 0.6608 and 0.6425 if selling accelerates. A break above 0.6955 could extend the rebound from the 200-day SMA near 0.6870.