The AUD/USD pair has bounced back up from its support zone on a daily time frame. This support zone was given in our analysis on the 15th of May. The volatility for the pair was peaked at this level because the price was extending its piercing of the Bollinger band at an important level of support.
The piercing of the Bollinger band does usually have a significant importance at a major level of support/resistance history shows this does often reverse the trend.
The RSI is showing a clear sign of deflection in relation to the price action which means bias could be towards the upside and the price may revert back to its mean.
The AUD/USD pair is till trading below the 50 day (shown in green) and 100 day (shown in yellow) moving averages which suggests that bears could be still in control. The price is also trading well below its downward trend line which shows weakness for the pair- thus strengthening the above argument further.