• AUD/USD could slide toward the rectangle's lower boundary near 0.7070.
• The 14-day Relative Strength Index near 45 suggests fading bullish momentum.
• The pair may test the immediate barrier at the 50-day EMA of 0.7127.

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours on Friday. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control.

However, the AUD/USD pair is holding a slight bearish tone as it sits beneath both the nine-day and 50-day Exponential Moving Averages (EMAs). The proximity of these EMAs just overhead suggests topside attempts are likely to face supply, while the 14-day Relative Strength Index (RSI) near 45 hints at fading bullish momentum rather than outright oversold conditions.

The AUD/USD pair may fall toward the lower boundary of the rectangle around 0.7070. Further declines would put downward pressure on the pair to explore the four-month low of the 0.6833 region, recorded on March 30.

On the upside, the immediate barrier lies at the 50-day EMA of 0.7127, followed by the nine-day EMA at 0.7147. A break above these averages would strengthen the bullish bias and support the pair to approach the upper rectangle boundary around 0.7270, followed by 0.7277, the highest level seen since June 2022, recorded on May 6.

(The technical analysis of this story was written with the help of an AI tool.)