AUD/USD Price Analysis: Recovery remains doubtful below 0.7435

• AUD/USD bounces off one-week low, regains above previous support lines.
• RSI recovery from oversold conditions backs the rebound.
• A confluence of 200-SMA, short-term channel resistance challenges recovery moves.

AUD/USD consolidates early Asian losses around 0.7360 while heading into Monday’s European session.

The Aussie pair dropped to the fresh one-week low but couldn’t stay below a downward sloping trend line from July 07, not to forget a short-term rising trend line forming part of the nearby channel.

Given the RSI rebound from the oversold conditions, the quote aims to cross the 100-SMA immediate hurdle surrounding 0.7370. However, any further upside will be challenged by a descending resistance line from August 04, near the 0.7400 round figure.

If at all the AUD/USD bulls manage to stay beyond the 0.7400 threshold, a convergence of 200-SMA and the stated channel’s upper line, near 0.7435 will be a tough nut to crack for the bulls.

Alternatively, the yearly low surrounding 0.7290-85 remains on the bears’ radar for now ahead of highlighting October 2020 tops surrounding 0.7240.

AUD/USD: Four-hour chart

Trend: Bearish