The recent decline has brought the pair into a deeply oversold territory, which is the only logical explanation behind today's trading. The pair managed to break above the first resistance of 0.6540, and as long as it remains above this level, the short-term outlook seems cautiously bullish.
Another level to watch will be at around 0.6590, where previous cycle lows are located, and this is now a significant resistance. Should the AUDUSD pair go through this zone, the medium-term outlook could change to bullish.
On the downside, a decline below 0.6540 could lead to a further drop toward 0.6510, and afterward, bears will be targeting the current cycle lows near 0.6450.
Considering the oversold conditions and soaring equities, the Aussie could rise further, despite the dovish RBA and worsening coronavirus situation.
