- The AUD/USD pair struggled to capitalize on its attempted intraday recovery from a support marked by the lower end of a short-term descending trend-channel.
- Slightly oversold conditions on hourly charts prompted some short-covering move at the start of a new trading week, albeit lacked any strong bullish conviction.
Meanwhile, technical indicators maintained their bearish bias on the daily chart and turned out to be one of the key factors that kept a lid on the intraday positive move near the trend-channel resistance.
This coupled with the fact that oscillators on the 1-hourly chart have also moved out of the oversold territory, now support prospects for the resumption of the near-term well-established bearish trend.
However, the downside is likely to remain supported by the lower end of the trend-channel ahead of this week’s key event risk – the latest FOMC policy update, scheduled to be announced on Wednesday.
On the flip side, a sustained break through the trend-channel resistance, near the 0.6880 region, leading to a subsequent move beyond the 0.6900 handle might prompt some addition short-covering move.
AUD/USD 1-hourly chart