AUD/USD technical analysis: Bulls likely to struggle near 200-hour EMA/38.2% Fibo. confluence resistance

   •  The AUD/USD pair built on its weekly bullish gap and climbed to multi-day tops, around the 0.6935 region during the early European session.

   •  A surprise election victory for the country's incumbent government turned out to be one of the key factors fueling the short-covering move. 

Sustained move beyond a confluence support - comprising of 100-hour SMA and 23.6% Fibonacci retracement level of the 0.7068-0.6862 recent slump was seen as a key trigger for bullish traders, setting the stage for further intraday positive momentum.

Meanwhile, technical indicators have been gaining positive traction on the 4-hourly chart but are already pointing to slightly overbought conditions on the 1-hourly chart. Moreover, oscillators on the daily chart maintained their bearish bias, warranting some caution for bullish traders.

Hence, any subsequent intraday positive momentum seems more likely to confront a stiff resistance/take a brief pause near the 0.6945-50 region, which marks another confluence region comprising of 38.2% Fibonacci retracement level and 200-hour EMA.

AUD/USD 1-hourly chart