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AUD/USD Bearish Under 0.7040

The AUD/USD found support after falling to about 0.6940 this week. The pair rebounded and broke above a falling trendline and the 50-hour simple moving average see in the 1H chart.

AUD/USD 1H Chart 9/25
(click to enlarge)

The rally however was stalled at 0.7040. This resistance is becoming key in the short to medium-term. If the market breaks above 0.7050 (give it some elbow space), there is a chance of further bullish correction in the short-term. In this scenario, there might be upside risk towards the 0.7125-0.7150 area. 

On the other hand ,a break below 0.6975 would signal bearish continuation. After all, the prevailing downtrend is still dominating the technical picture in the 1H chart (as well as the daily chart). The 1H RSI held below 60 for the most part and price is still under the 100-, and 200-hour SMAs. The bearish continuation scenario has the 0.6938 low and then the 0.69-0.6910 lows on the year in sight, with further downside risk, in-line with the prevailing medium-term downtrend.