“¢ The AUD/USD pair continued with its struggle to make it through the 0.6935 supply zone, marking the top end of a short-term trading range held over the past two weeks or so.
“¢ The recent range-bound price action constituted towards the formation of a bearish continuation – rectangle pattern on hourly charts, which forms during a pause in the trend.
The intraday pullback has now dragged the pair below 200-hour EMA and technical indicators on the 1-hourly chart have drifted into the negative territory. Hence, a follow-through weakness below the 0.6900 handle should pave the way for a further intraday decline
Moreover, oscillators on the 4-hourly chart have also been losing positive momentum while have recovered from oversold conditions and further add credence to the bearish outlook, setting the stage for a slide back towards retesting multi-month lows, around the 0.6865 region.
Only a sustained move beyond the mentioned trading range hurdle might negate the bearish bias and prompt some aggressive short-covering move, which might assist the pair to aim towards reclaiming the key 0.70 psychological mark.
AUD/USD 1-hourly chart
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