AUD/USD Price Analysis: Eases from multi-day tops, still well bid above 0.7100 mark

The AUD/USD pair built on the overnight recovery move from the 100-day SMA support, around the key 0.7000 psychological mark and gained traction for the second consecutive session on Tuesday.

The momentum pushed the pair to four-day tops, near a resistance marked by the 38.2% Fibonacci level of the 0.7346-0.7005 recent decline. A sustained move beyond 100-hour SMA and a subsequent strength beyond the 0.7100 round-figure mark was seen as a key trigger for intraday bullish traders.

Meanwhile, technical indicators on the 4-hourly chart have recovered from the bearish territory and support prospects for additional gains. However, oscillators on the 1-hourly chart are already flashing slightly overbought conditions and maintained their bearish bias on the daily chart.

The set-up warrants some caution for bullish traders ahead of the first US presidential debate. This makes it prudent to wait for some strong follow-through buying before confirming that the recent downfall is over and positioning for any further appreciating move for the AUD/USD pair.

On the flip side, the 0.7100 mark now seems to protect the immediate downside and is closely followed by the 23.6% Fibo. level around the 0.7080 region. Dips towards the mentioned support might continue to attract some buying and remain limited near the 100-hour SMA, around the 0.7065 region.

A convincing breakthrough will negate any near-term positive bias and turn the pair vulnerable to eventually slide below 100-day SMA support. The downward trajectory could then drag the AUD/USD pair further towards the 0.6925 intermediate support en-route the 0.6900 round-figure mark.

AUD/USD 1-hourly chart

Technical levels to watch