The AUD/USD currency pair on Thursday pulled back off session highs of about 0.6870 to trade at about 0.6835. The currency pair appears to be about to complete a double-top reversal pattern formation in the 60-minute chart.

The pair has now plummeted to trade closer to the 100-hour moving average line. However, the currency pair still seems to have a lot of room left to run before reaching 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 Thursday, the US initial jobless claims of the week ending December 22 missed the expected claim count of 210k with a higher tally of 218k. The continuing claims for the preceding week were in line with the estimate of 1.875 million. Pending home sales for November missed the expectation of 1% with a change of 0%, while the preliminary wholesale inventories for November were in line with the estimate of -0.2%.

Earlier in the week, the Richmond Fed Manufacturing Index for November fell short of the expected reading of -7 with a reading of -11. The housing price index for October also missed the expected (MoM) change of 0.5% with a change of 0.3%. On the other hand, the S&P/Case-Shiller Home Price Indices for October missed the (YoY) expectation of 5% with a change of 4.9%. Traders will be looking forward to the Chicago Purchasing Manager’s Index for December on Friday.

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

Technically, the AUD/USD currency pair appears to be about to complete a double-top reversal pattern formation in the 60-minute chart. The 14-hour RSI remains central, leaving more room for downward movement.

Therefore, the bears will be looking to stretch the current pullback towards 0.6817 or lower to 0.6797. On the other hand, the bulls will look to pounce on rebounds at about 0.6852 or higher at 0.6871.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to be trading within an ascending channel formation. The 14-day RSI also seems to support a long-term bullish bias as moves closer to overbought conditions.

Therefore, the bulls will be targeting extended gains at about 0.6924 or higher at 0.7024. On the other hand, the bears will look to pounce on pullbacks at about 0.6728 or lower at 0.6615.