AUDUSD recently broke through the resistance around the .6300 major psychological mark before retreating from the highs around .6415. Price could find support at the Fibonacci retracement levels shown below.

The 38.2% Fib is close by at .6286 near the former resistance zone and the 100 SMA dynamic inflection point. A larger correction could dip to the 50% Fib at .6248 or the 61.8% level at .6209. If any of these hold as support, AUDUSD could resume the climb to the swing high or higher.

Stochastic already indicated oversold conditions and looks ready to pull higher to suggest a pickup in upside pressure. The oscillator has plenty of room to climb before reflecting exhaustion among buyers, so price could keep following suit.

RSI, on the other hand, is still on the move down to suggest that sellers are in control. The oscillator has a bit more ground to cover before reaching the oversold area, so the correction could keep going until that happens.

AUDUSD retreated on risk-off flows in previous trading sessions, although the US dollar could also be on the back foot due to downbeat US CB consumer confidence data. Underlying components reveal a potential slowdown in employment, possibly dragging the dollar further south later on.

Meanwhile, the RBA has suggested a more gradual approach to easing down the line, which means that the Aussie could take cues from data as it gets released. Earlier today, the CPI report missed the mark, as the reading held steady at 2.5% instead of rising to 2.6%.

Still, the numbers don’t seem to be enough to trigger a more dovish shift for the central bank, keeping AUD somewhat supported. Upcoming US preliminary GDP data could still influence USD direction later in the week, as significant downward revisions to growth figures could further stoke dovish Fed expectations.