The AUDUSD pair, currently trading at 0.67940, has made minor progress in recovering from its most substantial daily decline in a month, thus ending a three-day losing streak. However, it is expected that this recovery will be minimal according to the view of @nehcap.

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• AUD/USD prints mild gains to pare the biggest daily loss in a month, snaps three-day losing streak.

The pair currently trades last at 0.67940.

The previous day high was 0.6855 while the previous day low was 0.6753. The daily 38.2% Fib levels comes at 0.6792, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6816, expected to provide resistance.

AUD/USD bulls struggle to regain the 0.6800 round figure while printing mild gains around the intraday high of 0.6799 heading into Wednesday’s European session. In doing so, the Aussie pair prints the first daily gains in four while bouncing off the 200-day Exponential Moving Average (EMA).

However, the previous day’s clean rejection of the three-week-old bullish channel keeps the AUD/USD sellers hopeful unless the quote rises past the stated channel’s lower line, close to 0.6890 by the press time.

Also acting as the upside filter is the 0.6900 round figure and the top line of the aforementioned rising channel, near the 0.7000 threshold.

It’s worth noting that the MACD signals are still bullish and the RSI (14) line suggests a continuation of the latest rebound by staying above 50.0 but not overbought.

As a result, the AUD/USD buyers may keep the reins unless the quote stays beyond the 200-EMA level of 0.6760.

Even if the quote drops below 0.6760, the 50% Fibonacci retracement level of 0.6665 and the lows marked in April and March, respectively near 0.6575 and 0.6565, can test the AUD/USD bears before giving them control.

Fundamentally, the AUD/USD pair faces multiple challenges from the Fed and China concerns.

Also read: AUD/USD pares weekly losses around 0.6800 as markets brace for Fed Chair Powell’s testimony

Trend: Limited recovery expected

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6789 at the time of writing. Pair opened at 0.6785 and is trading with a change of 0.06% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.667, 50 SMA 0.6679, 100 SMA @ 0.6723 and 200 SMA @ 0.6692.

The previous day high was 0.6855 while the previous day low was 0.6753. The daily 38.2% Fib levels comes at 0.6792, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6816, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.674, 0.6696, 0.6638
• Pivot resistance is noted at 0.6842, 0.69, 0.6945

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