AUDUSD Technical Analysis
The Australian dollar has been moving lower against the US dollar, in a descending channel pattern on its 4-hour time frame. The pair is currently testing the channel support around the 0.7600 level and could be due for a bounce back to the resistance at 0.7700.

The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. However, the gap between the moving averages is narrowing to signal weakening bearish momentum. If the 100 SMA crosses above the 200 SMA, it could mean that a reversal is in the cards.

Stochastic is already indicating oversold conditions and looks ready to turn higher, so the pair could follow suit. RSI is also in the oversold region to show that sellers are exhausted and might let buyers take over. In that case, a move back to the top of the channel or at least until the mid-channel area of interest at 0.7650 could be possible.

The US dollar has been on weak footing recently, as economic data has shown some downside surprises. This has cast doubts on the Fed's ability to hike interest rates again before the end of the year, which is why the dollar has been giving up ground to its peers. However, the upcoming FOMC minutes could provide more clues on whether tightening is still in the cards or not.

As for the Australian dollar, the currency has been able to draw some support from stronger than expected data from China, its largest trading partner. However, the RBA has been less upbeat in its latest policy statement, citing concerns about inflation and wage growth. This could keep a lid on any rallies for the Aussie, especially since the central bank has been known to intervene in the forex market when necessary.

With that, the path of least resistance for AUDUSD is to the downside, but a bounce could be possible if the channel support holds. A break below this level, on the other hand, could mark the start of a longer-term selloff for the pair.