• AUD/USD picks up bids to defend the bounce off key DMA, pokes five-week-old previous support.
• Bearish MACD signals, downbeat RSI keeps sellers hopeful.
• Buyers need to cross 0.6975 to retake control.

AUD/USD holds onto the day-start rebound from a seven-week low as bulls attack the previous support line near 0.6835 during early Thursday morning in Europe. In doing so, the Aussie pair defends the bounce off the 200-DMA to print the first daily gains in three.

It’s worth noting, however, that the recovery remains elusive amid bearish MACD signals and the downbeat RSI (14). Adding strength to the downside bias is the AUD/USD pair’s sustained trading beneath the support-turned-resistance line from late December 2022.

That said, the AUD/USD bears are on the watch and waiting for a clear break of the 200-DMA, around 0.6800 at the latest, to initiate fresh short positions.

Following that, a slump toward the previous monthly low surrounding 0.6685 can’t be ruled out.

However, the last December’s bottom surrounding 0.6630 could challenge the AUD/USD bears afterward.

On the flip side, a daily closing beyond the immediate hurdle, namely the support-turned-resistance line of 0.6835-40, can challenge the weekly high of 0.6920.

Even so, the upside momentum remains unclear before the AUD/USD crosses a bit longer previous support line, close to 0.6970 at the latest.

Also acting as an upside hurdle is the 0.7000 threshold and the mid-February swing high near 0.7030.

Overall, AUD/USD rebound remains unimpressive as bears keep the reins.

AUD/USD: Daily chart

Trend: Bearish