FXStreet (Guatemala) - AUD/USD has been improving overnight in a better risk environment, while oil started to show signs of a possible short squeeze but didn't have the legs and supply came back on and capped the bulls recovery attempts. WTI actually made fresh lows as a result to 28.33.We are in a phase of consolidation again now with resistance in the 200 sma on the hourly sticks at 0.6956 limiting the upside potential on a relatively quiet calendar except for Westpac's consumer confidence index coming up with the hour. Some downside this morning might come in the headwinds from New Zealand's own domestic poor inflationary backdrop and from today's CPI Q4 big miss where the kiwi got whacked 70 pips. Technically, Valeria Bednarik explained that the long term bearish picture remains firm in place, although a short term upward corrective extension could not be dismissed at the time being, "Given that the 1 hour chart presents a bullish tone, as the technical indicators are barely retreating from overbought territory, whilst the price remains well above a bullish 20 SMA" Valeria added, "In the 4 hours chart, the price is above a flat 20 SMA that provided a short term support in the American afternoon around 0.6905, while the Momentum indicator heads higher above the 100 level, and the RSI indicator hovers around its mid-line." For more information, read our latest forex news.