- AUD/USD remained confined in a narrow trading band on Wednesday.
- Neutral technical set-up warrants some caution for aggressive traders.
The AUD/USD pair extended its consolidative price action through the early North-American session on Wednesday and remained well within the striking distance of one-week lows.
The pair seesawed between tepid gains/minor losses and was confined in a narrow trading band around 50% Fibonacci of the 0.6754-0.6939 recent bounce from November swing lows.
This is closely followed by 200-period SMA, around the 0.6835 region, and 61.8% Fibo. level, which if broken decisively might be seen as a key trigger for bearish traders.
Some follow-through selling below the mentioned support levels might prompt some aggressive technical selling and accelerate the slide further towards the 0.6800 handle.
However, neutral technical indicators on hourly/daily charts have failed to support any firm near-term direction and thus, warrant some caution before placing any aggressive bets.
On the flip side, any recovery seems to confront fresh supply near the 0.6865-70 region (38.2% Fibo.), above which bulls could make an attempt towards reclaiming the 0.6900 handle.
AUD/USD 4-hourly chart
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