AUDUSD recently broke through the key resistance at the .6600 major psychological mark, which happens to be the neckline of a double bottom reversal pattern.

Price is stalling around .6670 and might be in for a pullback to the former resistance which might now hold as support. This lines up with the 38.2% Fibonacci retracement level that could keep losses in check.

A larger pullback could reach the 50% level at .6568 or the 61.8% Fib near the moving averages. The 100 SMA is crossing above the 200 SMA to indicate that the path of least resistance is to the upside or that support levels are more likely to hold than to break.

Stochastic is heading lower to show that bearish pressure is present, and the oscillator has room to slide before indicating oversold conditions or exhaustion among sellers.

RSI is also heading lower to show that bears are in control, and this oscillator has more room to slide before signaling a possible return in bullish pressure. A break below the Fibs could set off a dip to the swing low at .6464 or lower.

AUDUSD might take cues from top-tier US data due throughout the week since there are no reports due from the Australian economy.

The US has its CPI, PPI and retail sales figures lined up, and the outcomes are likely to impact Fed rate cut expectations. Recall that the data printed last week mostly fell short of estimates, leading many to reprice earlier easing bets.

Still, stronger than expected inflation data might lead to another pushback in easing hopes to June while a pickup in consumer spending might also keep the Fed hawkish. On the other hand, weak US data could translate to dollar weakness, especially against the Aussie since the RBA is one of the more optimistic central banks.