The 200-period simple moving average (SMA) in the four-hour chart seems to be a hurdle for the AUD/USD bulls over the past two days, and the falling RSI which heads towards its 50 neutral level suggests that the market may stabilise in the short-term.
Exceeding the 200-period SMA and more importantly the upper surface of the Ichimoku cloud currently at 0.6940, the rally may get new steam, probably until the 0.6965 former resistance area. Further up, the bulls could retest the 38.2% Fibonacci of 0.6993 of the 0.7392-0.6745 down-leg before touching the 0.7007 level.
Otherwise and if the price retreats below the 50-period SMA and 23.6% Fibo of 0.6898, the market may experience further deterioration until the 0.6864 support mark. Lower, all eyes will turn to the 0.6830 level.
In brief, AUD/USD could record sideways trading in short-term, though if the pair manages to climb comfortably above the cloud, additional gains may follow.
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