• AUD/USD holds onto the bearish bias for the third consecutive day, stays pressured around one-week low.
• Upward sloping trend line from January, falling wedge’s lower line challenge immediate downside.
• Bulls need validation from the 100-DMA to retake controls.

AUD/USD takes offers around 0.7050, printing a three-day downtrend amid the initial Asian session on Monday. In doing so, the Aussie pair fails to extend the previous day’s corrective pullback by staying pressured inside a bullish chart pattern called a falling wedge.

That said, the quote drops towards the formation’s support line near the 0.7000 threshold, with an upward sloping trend line from late January acting as immediate support near 0.7030.

In a case where AUD/USD prices remain bearish past 0.7000, the yearly low surrounding 0.6965 will be in focus.

Hence, there prevails a limited downside available for the bears to cheer even if the MACD and the RSI conditions keep sellers hopeful.

On the flip side, recovery moves may initially aim for confirming the bullish chart pattern, by crossing the 0.7215 hurdle. However, the 100-DMA level surrounding 0.7260 appears a tough nut to crack for the AUD/USD bulls.

Should the pair remains firmer past 0.7260, the odds of its rally targeting April’s peak of 0.7662 can’t be ruled out.

AUD/USD: Daily chart

Trend: Limited downside expected