• AUD/USD consolidates its pullback from the 3-week high that has been sidelined lately.
• Australia’s GDP in the first quarter of 2022 is estimated to have declined by 0.7% quarter-on-quarter.
• Bearish chart pattern, retreating RSI keeps sellers hopeful.
• 200-SMA adds to the filters on the downside, recovery moves have several hurdles to overcome.

AUD/USD resumes offers at 0.7178 as bears lick their wounds after the price reversal from a three-week high. In doing so, the Aussie pair consolidates its first daily loss in four ahead of the key first-quarter Australian gross domestic product (GDP) release in Wednesday’s Asian session.

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The pullback in AUD/USD the day before depicts a bearish rising wedge chart pattern on the four hour play. The bearish bias is also supported by the decline in the RSI (14).

However, the 200-SMA offers an additional barrier to the south around 0.7120, in addition to the wedge support line indicated near 0.7135.

If the quote breaks below 0.7120, the theory holds that a new yearly high is expected below the previous month’s low of 0.6828. During the fall, the 23.6% Fibonacci retracement (Fibo.) from April to May around 0.7030, as well as the psychological magnet of 0.7000 can offer intermediate stops.

On the other hand, rally moves need to reject the formation of a wedge, breaching the immediate 0.7220 hurdle, to convince short-term buyers.

Even so, the 50% Fibo. and the previous monthly high, around 0.7245 and 0.7270 respectively, may challenge the bullish momentum beyond 0.7220.

Overall, the AUD/USD tease is ahead of key Aussie data, but the downtrend necessitates strong disappointment from the expected data and presents multiple challenges.

AUD/USD: four-hour chart

Trend: grinds less