AUD/USD Price Analysis: Break below 0.7100 mark to pave the way for further weakness
- AUD/USD remained depressed through the early North American session on Monday.
- Mixed oscillators on hourly/daily charts warrant caution before placing directional bets.
The AUD/USD pair struggled to capitalize on its goodish intraday bounce of around 40-45 pips and was last seen trading with modest losses, around the 0.7120-25 region,
The pair showed some resilience below the 100-hour EMA and attracted some dip-buying near the 0.7100 round-figure mark. However, the prevalent risk-off mood continued benefitting the safe-haven USD and kept a lid on the attempted rebound.
Meanwhile, the recent positive move over the past two weeks or so has repeatedly failed near a multi-day-old ascending trend-line resistance. Expectations of further easing by RBA in November seemed to be a key factor capping gains for the AUD/USD pair.
That said, mixed technical indicators on hourly/daily charts warrant some caution before placing any aggressive directional bets. This makes it prudent to wait for some follow-through selling below the 0.7100 mark before placing any intraday bearish bets.
The AUD/USD pair might then turn vulnerable to aim to retest the 0.7025-20 horizontal support. The downward trajectory could further get extended and assist bearish traders to aim back towards challenging the key 0.7000 psychological mark.
On the flip side, the 0.7145 horizontal level now seems to have emerged as immediate resistance. Any further move up might continue to confront a stiff resistance and remain capped near the mentioned trend-line, currently near the 0.7170-75 region.
AUD/USD 1-hourly chart
Technical levels to watch