AUD/USD rebounds from swing lows, faces resistance at 200-day MA

AUD/USD has staged a recovery from earlier session lows, bouncing off a critical support area around August's swing lows before advancing to test the 200-day moving average resistance. The pair found buying interest after sellers failed to break below the key long-term support zone, prompting a technical rebound. However, the recovery rally has encountered significant resistance at the 200-day MA level, creating a technical sandwich pattern on the 4-hour chart. This price action suggests a battle between buyers defending the swing area support and sellers protecting the moving average resistance. Traders are closely monitoring whether the pair can break above the 200-day MA to signal further upside potential, or if rejection at this level leads to another test of support. The technical setup indicates near-term consolidation is likely while the market decides on directional bias.