AUD/USD Technical Analysis: Upside is likely to remain capped near a support-turned-resistance
- Bulls failed to capitalize on Friday’s goodish recovery move.
- Weakness below 0.6800 needed to confirm any further slide.
The AUD/USD pair struggled to capitalize on the previous session's goodish recovery move and remained depressed through the early European session on Monday.
Given last week's sustained weakness below 100-day SMA, coinciding with over one-month-old ascending trend-line, the bias remains tilted in favour of bearish traders.
Meanwhile, mixed technical indicators on daily/hourly charts warrant some caution before placing any aggressive directional bets despite renewed trade optimism.
Hence, it will be prudent to wait for some follow-through selling below the 0.6800 handle before positioning for any subsequent slide back towards the 0.6770 region.
The downward momentum could further get extended towards challenging the 0.6700 round-figure mark with some intermediate support near the 0.6740-30 region.
On the flip side, the mentioned confluence support, currently near the 0.6835-40 region, now seems to act as immediate resistance and is closely followed by the 0.6875-80 supply zone.
AUD/USD daily chart
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Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
