The AUD/USD currency pair on Friday bounced off the trendline support at about 0.6624 before finding strong resistance at 0.6654. The currency pair continues to trade within a descending channel formation in the 60-min chart. 

The pair has now plummeted to trade several levels below the 100-hour moving average line. As a result, the currency pair appears to be moving closer to the oversold levels of the 14-hour RSI.

AUD/USD Fundamentals Overview

From a fundamental perspective, the AUD/USD currency pair is trading at the back of a relatively busy period in the US market. On Friday, the core personal consumption expenditures price index for June missed the (YoY) expectation of 4.2% with a change of 4.1%. The (MoM) equivalent matched the forecast of 0.2%.

On the other hand, personal income for the period fell short of 0.5% with a change of 0.3%, while personal spending outshone the forecasted change of 0.4% with a change of 0.5%. Elsewhere, the UoM 5-year consumer inflation expectations for June missed the expected rate of 3.1% with a rate of 3%.

In Australia, retail sales for June missed the expected (MoM) change of 0% with a change of -0.8%. Earlier in the week, the Reserve Bank of Australia’s trimmed mean CPI for Q2 missed the (QoQ) expectation of 1.1% with a change of 1%, while the (YoY) equivalent fell short of 6% with a change of 5.9%. Elsewhere, the general CPI for Q2 missed the expected (QoQ) change of 1% with a change of 0.8%.

AUD/USD Technical Analysis (the 60-min Chart) 

Technically, the AUD/USD currency pair appears to be trading within a descending channel formation in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.

Therefore, the bears will be looking to stretch the current run of declines toward 0.6624 or lower to 0.6605. On the other hand, the bulls will look to pounce on rebounds at about 0.6664 or higher at 0.6684.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to be about to complete a double-top reversal pattern formation. This indicates an attempt by the pair to take control of the currency pair.

Therefore, the bears will be looking to extend the current pullback towards 0.6571 or lower to 0.6500. On the other hand, the bulls will be targeting long-term profits at about 0.6721 or higher at 0.6788.