• AUD/USD takes offers to refresh intraday low, trims weekly gains.
• Bearish moving average crossover, pullback from nearby horizontal resistance favor sellers.
• 61.8% Fibonacci retracement level lures bears, upside momentum needs to cross 0.7050 to convince buyers.

AUD/USD consolidates the biggest daily gains in a fortnight as it drops back to 0.6955 during Friday’s Asian session. In doing so, the Aussie pair extends pullback from a three-week-old horizontal resistance area while portraying a death cross between the 50-SMA and the 200-SMA.

Given the bearish moving average crossover and the pair’s inability to surpass the short-term key hurdle, the AUD/USD sellers have a brighter scope of return.

That said, a convergence of the aforementioned SMAs around 0.6935-30 appears the immediate important support before directing the quote back to the 61.8% Fibonacci retracement level of July-August upside, near 0.6850.

It’s worth noting that the 50% Fibonacci retracement level near 0.6910 and 0.6800 are some extra filters to the south to watch for the AUD/USD bears.

On the flip side, the recovery moves remain elusive until the quote stays below the stated horizontal resistance area, around 0.6980-90. Also acting as the upside hurdle is the 0.7000 threshold.

Above all, AUD/USD bulls need validation from the early August swing high near 0.7050 to retake control.

AUD/USD: Four-hour chart

Trend: Further weakness expected