• AUD/USD prints mild gains to pare the biggest daily loss in a month, snaps three-day losing streak.
• Rejection of monthly bullish channel keeps Aussie bears hopeful unless the quote stays below 0.6890.
• Multiple technical levels, bullish MACD signals and upbeat RSI conditions challenge bears.

AUD/USD bulls struggle to regain the 0.6800 round figure while printing mild gains around intraday high of 0.6799 heading into Wednesday’s European session. In doing so, the Aussie pair prints the first daily gains in four while bouncing off the 200-day Exponential Moving Average (EMA).

However, the previous day’s clean rejection of the three-week-old bullish channel keeps the AUD/USD sellers hopeful unless the quote rises past the stated channel’s lower line, close to 0.6890 by the press time.

Also acting as the upside filter is the 0.6900 round figure and the top line of aforementioned rising channel, near the 0.7000 threshold.

It’s worth noting that the MACD signals are still bullish and the RSI (14) line suggests continuation of the latest rebound by staying above 50.0 but not overbought.

As a result, the AUD/USD buyers may keep the reins unless the quote stays beyond the 200-EMA level of 0.6760.

Even if the quote drops below 0.6760, the 50% Fibonacci retracement level of 0.6665 and the lows marked in April and March, respectively near 0.6575 and 0.6565, can test the AUD/USD bears before giving them control.

Fundamentally, the AUD/USD pair faces multiple challenges from the Fed and China concerns

AUD/USD: Daily chart

Trend: Limited recovery expected