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AUD/USD recovery attempts stall below 0.70 resistance
The move comes as the dollar and oil strength deflate risk sentiment, with technical indicators on the daily chart turning bearish.
Action Forex said fresh AUD/USD recovery attempts early Monday stalled again as the pair approached the psychological 0.7000 level. The outlet pointed to repeated failures to clear Fibo resistance at 0.6982 and rejection below 0.70, warning that any rebound from the Oct 1 low near 0.6903 may be limited.
The report cited bearish technical conditions on the daily chart, including an RSI turn lower, 14-day momentum heading deeper into negative territory, and multiple moving-average bear crosses, including a recent 20/200 death-cross. It added that near-term price action should remain biased lower as long as AUD/USD holds below 0.70.
Action Forex also said a sustained break above 0.70 would ease immediate downside risk, but would require follow-through through a 0.7030 to 50 resistance zone. The outlook was framed around upcoming catalysts, including the RBA minutes on Tuesday and US CPI on Wednesday.