Since the beginning of the year, the currency pair lost over 5.0%, however, last week ended with a drop of almost 0.5% and remains in a bearish phase since mid-June.
Last week the AUDUSD initially fell but found enough buying pressure to trim most of its loses and managed to close near the high of the week, in addition, closed within the previous week range, which suggests being slightly on the bullish side of neutral.
The stochastic is showing an oversold market and is still displaying bearish momentum.
Looks like the bears are losing steam on this currency pair seen by the hammers made in the last two weeks. Therefore, we might expect a sideways consolidation or even an upward correction, although it might want to test the recent low to see if there are any buyers left.
Expecting an upward move to the confluence of a weekly resistance and the 61.8 Fibonacci retracement at 0.7531 on a bounce from the fresh lows made in the previous week at 0.7322 (scenario 1). However, a break above the previous week high at 0.7442 may initiate an upward correction to the confluence of a weekly resistance and the 61.8 Fibonacci retracement at 0.7531 (scenario 2).