AUD/USD Technical Analysis: Bulls trying to defend ascending channel/bearish flag chart pattern support

   •  The pair continued with its struggle to build on its momentum beyond the 0.7060 region but has managed to defend a support marked by the lower end of a short-term ascending trend-channel formation on the 1-hourly chart.

   •  Given the recent rejection slide from the very important 200-day SMA resistance, around the 0.7200 handle, the mentioned channel now seemed to constitute towards the formation of a bearish continuation flag chart pattern.

   •  However, the fact that the pair has managed to find acceptance above 100-hour SMA - for the first time in over one week or so, bullish oscillators on hourly charts support prospects for an extension of the ongoing recovery move. 

   •  Meanwhile, technical indicators on the daily chart are yet to catch up with the positive momentum and warrant some caution for bullish traders ahead of the latest FOMC monetary policy update on Wednesday.

   •  Hence, it would be prudent to wait for a strong follow-through buying before traders start positioning for any further up-move back towards reclaiming the 0.7100 mark, albeit a sustained weakness below the channel support might negate any near-term positive bias.

AUD/USD 1-hourly chart