AUD/USD Price Analysis: Falling wedge support, oversold RSI test bears around 0.7250

• AUD/USD remains pressured around three-week low, inside bullish chart pattern.
• Oversold RSI, immediate support line hints at corrective pullback.
• 200-SMA adds filters to the upside, 61.8% Fibonacci retracement challenges the bears.

AUD/USD stays depressed around 0.7260, down 0.28% on a day while fading bounce off intraday low amid Monday’s Asian session.

The Aussie pair flirts with the support line of a bullish chart pattern called falling wedge amid nearly oversold RSI conditions.

Hence, a corrective pullback towards the 0.7300 threshold can’t be ruled out. However, the upper line of the stated wedge, near 0.7315, followed by the 200-SMA level of 0.7321, will challenge the AUD/USD recovery moves afterward.

It should be noted, however, that a clear run-up beyond 0.7321 enables bulls to aim for the monthly top near 0.7480 with the 0.7400 psychological magnet acting as an intermediate halt.

Meanwhile, a downside break of 0.7255 nearby support line will have a 61.8% Fibonacci retracement level of August-September upside, around 0.7245, as an extra filter to the south.

Following that, August 27 swing low near 0.7220 and the 0.7200 round figure may entertain AUD/USD bears before directing them to August lows near 0.7105.

AUD/USD: Four-hour chart

Trend: Short-covering expected