- AUD/USD extended its sideways consolidative price action through the mid-European session.
- The technical set-up warrants some caution before placing any aggressive directional bets.
The AUD/USD pair lacked any firm directional bias and remained confined in a narrow trading band, around mid-0.6300s through the mid-European session on Monday.
The attempted intraday uptick faltered near a one-month-old ascending trend-line support break-point, which should act as a key pivotal point for intraday traders.
Meanwhile, technical indicators on hourly/daily charts have managed to hold in the bullish territory and support prospects for some near-term appreciating move.
However, persistent worries over an imminent global recession continued weighing on investors’ sentiment and this was evident from a fresh leg down in the equity markets.
This coupled with a strong pickup in the US dollar demand held investors from placing any fresh bullish bets and kept a lid on any meaningful positive move.
Conversely, bears are likely to wait for a sustained weakness below 200-hour SMA support, currently near the 0.6330 region, before positioning for any further downside.
Below the mentioned support, the pair is likely to accelerate the fall towards the 0.6300 mark before eventually dropping to last week’s swing low, around the 0.6265 region.
AUD/USD 1-hourly chart
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Technical levels to watch
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