- AUD/USD continued with its struggle to find acceptance above 0.6200 mark.
- The set-up warrants some caution before placing aggressive directional bets.
The AUD/USD pair managed to find some support ahead of the 0.6100 round-figure mark and has now recovered around 35 pips from the vicinity of 100-hour EMA.
Meanwhile, the pair’s repeated failures to find acceptance above the 0.6200 mark now seemed to constitute towards the formation of a double-top pattern on hourly charts.
The bearish pattern will be confirmed only once key support is broken decisively, making it prudent to wait for some follow-through selling before placing fresh bearish bets.
Meanwhile, technical indicators on hourly charts maintained their bullish bias and have also recovered from the negative territory on the daily chart, further warranting some caution.
In the meantime, a sustained move above the 0.6200 mark will negate the bearish set-up and might be seen as a key trigger for bullish traders, setting the stage for additional gains.
On the flip side, a decisive break through the 0.6100 handle will confirm a bearish breakdown and set the stage for a slide back towards the key 0.60 psychological mark.
AUD/USD 1-hourly chart
-637219384813450497.png)
Technical levels to watch
Share
