• AUDUSD rebounds from its lowest level since November

• Price jumps above descending trendline to test 200-day SMA

• Momentum indicators improve but remain in negative zones

AUDUSD had been in a constant decline after peaking at 0.6870 in December, breaking below both its 50- and 200-day simple moving averages (SMAs). Nevertheless, the pair managed to find its feet and rotate back above its descending trendline, currently attempting to claim the crucial 200-day SMA.

Should the price break above the 200-day SMA, the recent resistance of 0.6578 could prove to be the first barrier for the bulls to clear. Further advances could then cease at the January resistance of 0.6623 ahead of the 0.6689 hurdle. Surpassing that region, the pair might challenge the May peak of 0.6817.

On the flipside, if the pair reverses back lower, initial support could be found at 0.6525, which held strong both in December and January. A violation of that region could open the door for 0.6467 before the 2024 bottom of 0.6441 comes under examination. Sliding beneath that floor, the pair may descend towards the August low of 0.6363.

Overall, AUDUSD has regained traction following its bounce off the 2024 low of 0.6441. However, a break above the 200-day SMA is needed for the bulls to regain confidence for a full-scale reversal.