AUD/USD Price Analysis: Retreats from over 1-week tops, back below 0.60 mark

The AUD/USD pair trimmed a part of its early strong gains and retreated around 60-70 pips from over one-week tops set earlier this Wednesday.

Given the pair's sustained move beyond the 0.5975-85 supply zone, the bias remains tilted in favour of bulls and support prospects for additional gains.

The mentioned region coincided with 23.6% Fibonacci level of the 0.6686-0.5509 slump and is followed by a short-term ascending trend-line support.

Failure to defend the said support levels will suggest that the recent recovery from over 17-year lows has already run out the steam and negate the bullish set-up.

Meanwhile, technical indicators on hourly charts – though have eased from higher levels – maintained their bullish bias and add credence to a positive outlook.

However, oscillators on the daily chart have just recovered from the oversold territory and are yet to catch up with the recent bounce from the 0.5500 mark.

Hence, it will be prudent to wait for some follow-through buying, beyond the daily swing high level of 0.6074 before positioning for any further appreciating move.

AUD/USD 1-hourly chart

Technical levels to watch