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AUD/USD Price Analysis: A possible bullish divergence on daily chart

  • AUD/USD trims a part of its intraday recovery gains.
  • The set-up suggests a bottom might already in place.

The AUD/USD pair failed to capitalize on its intraday positive move beyond the 0.6900 handle and has now retreated around 20-25 pips from daily tops.

The pair's inability to register any meaningful recovery from over a decade low suggests that the near-term bearish pressure might still be far from over.

However, RSI on the daily chart has been diverging negatively against the price and indicate that the pair might have already bottomed out in the near-term.

A sustained move back above the 0.6770-75 supply zone will reinforce the bullish reversal set-up and set the stage for a further near-term appreciating move.

On the flip side, multi-year lows, around the 0.6660 region, might continue to protect the immediate downside, which if broken might negate the positive outlook.

Below the mentioned support, the pair might turn vulnerable to accelerate the fall further towards challenging the 0.6600 round-figure mark in the near-term.

AUD/USD daily chart

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