AUD/USD Price Analysis: The pair rebounds from 0.6560 and stalled at descending trend line

AUD/USD hits the high at 0.6716 and retraces.
Risk-averse environments keeping a lid on AUD/USD price appreciation.
US CPI could reinforce the pair to break major support at 0.6560.

AUD/USD hits the ceiling on a descending trendline after a rebound from the four-month low at 0.6564. The sharp rebounds came on Monday upon the US Dollar's weakness.

Receding bets for a 50-bps Federal Reserve (Fed) rate hike have prompted AUD/USD to surge higher, although the downside bias is likely to remain intact, in a risk-averse environment led by SVB fallout.

Any upside momentum for AUD/USD is likely to remain capped at Monday’s high around the 0.6713 mark, which is a support-turned-resistance and coincides with a descending trendline starting from February on a daily chart.

A break above will lead the pair to confront the next resistance at around 0.6766 which is pegged with 21-day Moving Average (DMA).

Both the 21-DMA and 50-DMA are pegged above the current price level, which is technically exerting overhead price pressure on AUD/USD and also confirming the bearish bias for the pair.

Downside support is seen at 0.6560, which is a key support level for the AUD/USD. A convincing break below will likely put the pair in a vacuum without any major support for a long distance. Regarding the said level, the pair has respected it on the last three attempts and AUD/USD looks resilient above that price point. The intermediate support lies at the psychological 0.6500 level.

AUD/USD: Daily chart

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