- The AUD/USD pair extended its sideways consolidative price action on Monday and remained well within a narrow trading band below the 0.6800 handle.
- The range-bound move over the past couple of trading sessions has been along two converging trend-lines, forming a symmetrical triangle on the 1-hourly chart.
- The lower end of the triangle coincides with 100-hour SMA – currently near the 0.6775 region – which should now act as a key pivotal point for intraday traders.
Given that technical indicators on hourly charts have struggled to gain any meaningful traction, it will be prudent to wait for a convincing break through the triangle resistance and the 0.6800 round figure mark before positioning for any further near-term recovery.
Meanwhile, oscillators on the daily chart maintained their bearish bias and hence, any further recovery runs the risk of fizzling out rather quickly. The pair seems more likely to meet with some aggressive supply and remained capped near the 0.6820 horizontal zone.
Only a sustained breakthrough the mentioned barrier might negate any near-term bearish bias and prompt some additional short-covering move, assisting the pair to surpass an intermediate resistance near mid-0.6800s and aim towards reclaiming the 0.6900 handle.
AUD/USD 1-hourly chart
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