The AUD/USD currency pair rebounded again this week to trade at about 0.6930 after the US Federal Reserve failed to rule out a rate cut this year. The currency pair’s latest rebound comes after another extended period of losses that dates back to the start of this month.

From a general view, the AUD/USD currency pair continues to trade in a descending channel, which supports a bearish bias despite the pullback this week. This bearish view extends back to mid last month, which again shows the level of control that the bears have.

AUD/USD Fundamentals Overview

From a fundamental perspective, the AUD/USD currency traders will look forward to Sunday’s RBA’s (Reserve Bank of Australia) Governor Lowe Speech. This could give some direction as to how strong the current AUD/USD bull-run is.

On the other hand, the US Dallas Fed Manufacturing Index will be out on Monday and this could offer the greenback some positivity to lean on. The short-term (3-month and 6-month) US Bill Auctions will also be on the table on Monday.

Besides that, there is the trade war with China to look forward to as Trump and Xi continue to play a cat-and-mouse game. It is unlikely there will be a winner if trade tensions between the two countries escalate.

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

Technically, the AUD/USD currency pair appears to be trading within a downward trending wedge, which supports a bearish bias sentiment. Both the 100-hour and the 200-hour moving average lines are below the current level of the pair, which supports the case of the pair’s recent rebound.

And with the Relative Strength Index Indicator showing that the pair is yet to hit overbought levels, this leaves some room for the bulls to capitalize. As such, the bulls will target profits at 0.6938 while the bears will look to pounce on any pullbacks towards 0.6904.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to enjoy strong support base around (0.6924-0.6900) trading zone. The pair appears to have gone through a double-top reversal pattern at the start of last year.

Given the current levels, the bulls will target long-term profits at around 0.7017 and higher at 0.7191 while the bears will target 0.6900 in case of pullbacks.

In summary, the AUD/USD currency pair appears to be under constant downward pressure despite the latest rebound. Given the economic events of next week, the next few days could be interesting.