AUD/USD Price Analysis: Bulls consolidates below 0.7300, double top formation portrays sideways movement

• AUD/USD locks in substantial losses in the early European session on Thursday.
• Double top near 0.7281  offers hopes to the bears, upside momentum confirms above 20-day SMA.
• Oversold MACD implies a wait-and-watch approach before placing aggressive bids.

AUD/USD continues to trade lower failing the previous three session’s upside momentum in European trading hours. The pair hovers in a 30-pips movement with a neutral stance.

At the time of writing,  AUD/USD is trading at 0.7262, down 0.20% for the day.

AUD/USD daily chart

On the daily chart, the pair has been under consolidating in a broader trading range of 0.7280n and 0.7420 for the past month, thus forming a rectangle channel. AUD/USD bears break the mentioned trading range on August 18 and touched the yearly lows at 0.7105 in subsequent trading sessions.

Currently, a sustained move above intraday’s high could test the 20-day Simple Moving  Average (SMA) at 0.7305.

The Moving Average Convergence Divergence (MACD) indicator reads in the oversold zone. Any uptick in the MACD would open amplify the buying pressure toward the high of August 17 at 0.7342.

Next, AUD/USD bulls would lookout for the 0.7380 horizontal resistance level.

Alternatively, if price moves lower then it could test the previous day’s low of 0.7236.

Next, the market participants would aim for the 0.7200 horizontal support level followed by the low of August 23 at 0.7119.

AUD/USD additional levels