AUD/USD technical analysis: off 7-month lows, 4H chart shows bullish RSI divergence

• AUD/USD has recovered from the seven-month low of 0.6828 hit earlier today
• Aussie may rise further toward 0.6860, as the 4-hour chart is showing a bullish indicator divergence. 

AUD/USD took a beating in early Asia, falling to 0.6828, the lowest level since Jan. 3, on broad-based US Dollar demand. 

As of writing, the spot is trading at 0.6842, representing marginal losses on the day. 

The relative strength index (RSI) on the 4-hour chart is now reporting a bullish divergence (higher lows). The hourly RSI is also flashing a similar development. 

So, further extension of the corrective bounce toward resistance at 0.6860 cannot be ruled out. 

A better-than-expected Aussie data released at 01:30 GMT also favors a stronger corrective bounce. 

The import price index for the second quarter came in at 0.9%, bettering the estimated drop of 1.4% by a big margin. Meanwhile, the export price index also beat estimates with a 3.8% print. 

4-hour chart

Trend: Oversold bounce

Pivot points