AUD/USD recovers to turn flat at 0.7185

As the US Dollar bulls seem to take breather, the AUD/USD pair staged a minor recovery from lower levels to currently trade absolutely flat from Friday close of 0.7184.

Earlier during Asian session, the pair extended its slide below 0.7200 handle and dropped to 0.7148 to nearly retest a 3-1/2 month low of 0.7145 touched in the previous week. 

Last week, the pair consolidated within a narrow trading range, below the very important 200-day SMA, and registered its fifth consecutive week of declines. The current consolidation phase after a sharp-slide suggests that the pair might be far from ending its near-term downward trajectory. However, a move back above 200-day SMA support turned resistance might negate the near-term bearish bias.

With US markets closed in observance of Memorial Day, the pair seems unlikely to break through the current trading range.

Technical levels to watch

On the immediate downside, 0.7150-45 remains immediate support to watch, below which the pair could immediate drop to test 0.7100 round figure mark.

Meanwhile on the upside, momentum above 0.7200 round figure mark might get extended but is likely to be capped at 100-day SMA support turned resistance near 0.7250 region, with intermediate horizontal resistance near 0.7220 level.