AUD/USD Technical Analysis: Correcting from ascending trend-channel resistance, downside seems limited

   •  Having touched a two-week high level of 0.7177, the pair started retreating from a resistance marked by the top end of a short-term ascending trend-channel formation.

   •  The intraday slide extended through the early European trading session and has now eroded a part of the previous session strong bounce from 200-hour SMA support.

   •  Slightly overbought conditions on the 1-hourly chart seemed to be the only factor prompting some profit-taking ahead of today’s release of the latest FOMC meeting minutes.

   •  However, given that the pair is holding comfortably above its important intraday moving averages – 50, 100 & 200-hour SMAs, support prospects for some dip-buying interest.

   •  Hence, it would be prudent to wait for a convincing break below the trend-channel support before confirming that the recent corrective bounce has already run out of steam.

AUD/USD 1-hourly chart