• AUD/USD retreats from intraday high, pares the first daily gains in four.
• Sustained break of previous support line, upbeat Momentum on the selling side favor bears.

AUD/USD struggles to keep daily gains, the first in four days, around 0.7130 during Tuesday’s Asian session.

In doing so, the Aussie pair retreats from 50% Fibonacci retracement (Fibo.) of January moves, as well as the 21-DMA.

Given the gradual advance in the Momentum line during the pair’s latest declines, coupled with the sustained downside break of previous support from January 28, AUD/USD bears are likely to keep reins.

That said, a three-week-old horizontal surrounding 0.7090-80 restricts immediate downside ahead of the 23.6% Fibo. near 0.7050.

It’s worth noting, however, that a downside break of 0.7050, may take a rest near the 0.7000 threshold before directing sellers towards the recent multi-month low around 0.6965.

Alternatively, 21-DMA and the stated support-turned-resistance, respectively around 0.7130 and 0.7165 in that order, restrict immediate upside moves of the AUD/USD pair.

Following that, 61.8% Fibonacci retracement level and the monthly high, near 0.7180 and 0.7250 in that order, will challenge the recovery ahead of calling back the bulls.

AUD/USD: Daily chart

Trend: Further weakness expected