AUD/USD Price Analysis: Remains on the defensive, multiple-tops pattern in the making

AUD/USD struggled to gain traction and remained confined in a range above mid-0.7700s.
Failures near the 0.7815-20 area constitute the formation of a bearish multiple-tops pattern.
Bears might still wait for a sustained break below the 0.7700 mark before placing fresh bets.

Haresh Menghani FXStreet

The AUD/USD pair lacked any firm directional bias and remained confined in a narrow trading band, above mid-0.7700s through the first half of the European session.

The US dollar built on the previous day's modest bounce from over two-month tops and strengthened a bit for the second consecutive session on Friday. A softer risk tone was seen as a key factor that benefitted the safe-haven USD and capped gains for the perceived riskier aussie.

From a technical perspective, repeated failures near the 0.7815-20 hurdle now seemed to constitute the formation of a bearish multiple-tops on short-term charts. The reversal pattern, however, is not complete until key support near the 0.7700 round-figure mark is broken.

Meanwhile, technical indicators on the daily chart are holding in the bullish territory but have been struggling to gain any meaningful traction. This further makes it prudent to wait for a sustained move in either direction before positioning for a firm near-term trajectory.

A convincing break below the 0.7700 handle will confirm a breakdown and accelerate the fall towards 0.7660. Some follow-through selling should pave the way for additional weakness and has the potential to drag the AUD/USD pair towards the 0.7600 round-figure mark.

On the flip side, the 0.7800 mark now seems to act as an immediate hurdle ahead of the 0.7815-20 key barrier. A convincing breakthrough will negate the negative outlook and set the stage for a move towards testing March monthly swing highs, around mid-0.7800s.

Some follow-through buying will shift the bias back in favour of bullish traders and pave the way for additional gains. The AUD/USD pair might then aim to reclaim the 0.7900 mark before darting towards the 0.7965-70 region en-route the key 0.8000 psychological mark.

AUD/USD 4-hour chart

Technical levels to watch

AUD/USD

Overview
Today last price	0.7769
Today Daily Change	0.0002
Today Daily Change %	0.03
Today daily open	0.7767

Trends
Daily SMA20	0.7704
Daily SMA50	0.7723
Daily SMA100	0.7701
Daily SMA200	0.7462

Levels
Previous Daily High	0.7819
Previous Daily Low	0.775
Previous Weekly High	0.7817
Previous Weekly Low	0.769
Previous Monthly High	0.785
Previous Monthly Low	0.7562
Daily Fibonacci 38.2%	0.7776
Daily Fibonacci 61.8%	0.7792
Daily Pivot Point S1	0.7738
Daily Pivot Point S2	0.7709
Daily Pivot Point S3	0.7668
Daily Pivot Point R1	0.7807
Daily Pivot Point R2	0.7848
Daily Pivot Point R3	0.7877

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.