- AUD/USD edged higher and climbed to fresh one-month tops on Monday.
- The set-up support favours bulls and supports prospects for additional gains.
- Slightly overbought conditions on the 4-hourly chart warrant some caution.
The AUD/USD pair climbed to fresh one-month tops, around the 0.6375 region in the last hour, with bulls now looking to extend the momentum further beyond 50-day SMA.
Given last week’s sustained move beyond 50% Fibonacci level of 0.7041-0.5509 downfall, some follow-through buying might be seen as a fresh trigger for bullish traders.
Above the mentioned barrier, the pair seems all set to surpass the 0.6400 mark and aim towards testing its next hurdle marked by 61.8% Fibo., around the 0.6470-75 region.
Meanwhile, technical indicators on the daily chart have just started gaining any meaningful positive traction and support prospects for a further near-term appreciating move.
However, oscillators on the 4-hourly chart are already flashing slightly overbought conditions and warrant some caution before placing any aggressive bullish bets.
Hence, it will be prudent to wait for some intraday consolidation or a modest pullback before initiating fresh bullish positions amid concerns over the coronavirus crisis.
On the flip side, the 0.6330-25 region might continue to protect the immediate downside, which if broken might accelerate the fall towards testing sub-0.6300 levels.
The 0.6290-85 region coincides with 50% Fibo. level and should act as a strong near-term base for the major, which if broken might negate any near-term bullish bias.
AUD/USD daily chart
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Technical levels to watch
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