AUD/USD Price Analysis: Oversold conditions, risk of rebound towards 0.7200

  AUD/USD is attempting a bounce from three-week lows of 0.7105, as it looks to recapture the 0.7200 round number.

  The aussie benefits from the risk-on market mood-driven broad US dollar weakness. Further, the Australian re-opening optimism outweighs the Delta covid variant concerns, especially after the country's PM Scott Morrison called on the state leaders to stick to their plan to re-open.

  As observed on the pairs daily chart, the bulls are attempting a bounce in the Asian trades this Monday, looking to take out the immediate resistance at 0.7172, which is the 23.6% Fibonacci Retracement level of the sell-off from the August 13 peak to the yearly lows reached last Friday.

  Recapturing the latter is critical to extending the recovery momentum towards 0.7200.

  The 14-day Relative Strength Index (RSI) is also rebounding from the oversold region, backing the corrective pullback.

audusd23.8.pngAlternatively, if the bulls fail to defend the intraday low at 0.7119, then a test of the multi-month lows of 0.7105 would be inevitable.

  Further south, sellers could then aim for the 0.7050 psychological barrier.

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