• AUDUSD shows some weakness in the bullish tendency

• Holds well above the SMAs

• MACD and RSI indicate negative correction

AUDUSD could not find enough buyers to have a green session after the rally towards the new almost four-month peak of 0.6630.

The pair is currently retreating, confirmed by the technical oscillators as well. The RSI is ticking down after the pullback off the 70 level, while the MACD is losing some momentum still standing above its trigger and zero lines.

Given the current negative momentum, the question now is whether the pair will stay resilient above the 20-period simple moving average (SMA), which is holding near 0.6580 in the 4-hour chart. A clear step below it would press the market towards the 0.6565 support and the 23.6% Fibonacci retracement level of the upward wave from 0.6338 to 0.6630 at 0.6560. Even lower, the 50-period SMA at 0.6550 could prevent a drop until the 38.2% Fibonacci at 0.6520.

In the positive scenario, a move higher could open the door for a retest of the previous peak of 0.6630 ahead of the far away resistance of 0.6740, taken from the peak on July 31.

To sum up, the latest rally in AUDUSD has not excited traders yet. An extension above the almost four-month high of 0.6630 is still required to make the upturn look more credible.