“¢ The AUD/USD pair struggled to build on its intraday positive move and the upside remained capped at the top end of a near two-week-old broader trading range.
“¢ The mentioned range constituted towards the formation of a bearish continuation – rectangle chart pattern on hourly charts, indicating a brief pause in the trend.
Meanwhile, the fact that the pair has managed to find decent support near 200-hour EMA support prospects for further intraday up-move. Technical indicators on hourly charts have been losing momentum but have managed to hold in the bullish territory and add credence to the positive outlook.
However, oscillators on the daily chart are yet to catch up with the recent recovery and warrant caution before placing any aggressive bullish bets. Hence, it would be prudent to wait for a sustained break through the mentioned trading range before positioning for any further near-term appreciating move.
On the flip side, weakness below the 200-hour EMA might find some support near the 0.6900 handle, which if broken might turn the pair vulnerable to accelerate the slide back towards challenging multi-month lows support near the 0.6865 region.
AUD/USD 1-hourly chart
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