- AUD/USD staged a goodish rebound on Friday, though lacked any strong follow-through.
- Any positive move might remain capped near the 0.6940 confluence support breakpoint.
- A break below the 0.6800 mark needed to confirm an extension of the corrective slide.
The AUD/USD pair maintained its bid tone through the early North American session, albeit struggled to capitalize on the move beyond the 0.6900 round-figure mark.
This is followed by an important confluence support breakpoint, around the 0.6940 region, which should now act as a key pivotal point for short-term traders. The mentioned support-turned-resistance comprises of a short-term ascending trend-line, 200-hour SMA and the 50% Fibonacci level of this week’s corrective slide.
Meanwhile, mixed technical indicators on hourly/daily charts haven’t been supportive of any firm near-term direction and warrant some caution for aggressive traders. Hence, it will be prudent to wait for a sustained strength beyond the 0.6940 hurdle before traders start positioning for the resumption of the prior bullish trend.
On the flip side, the 23.6% Fibo. level, around the 0.6865 region now seems to act as immediate support, below which the pair might aim to retest the 0.6900 mark. Some follow-through selling might be seen as a fresh trigger for bearish traders and set the stage for an extension of the corrective slide towards the 0.6735 support.
The downfall could further drag the pair below the 0.6700 round-figure mark, possibly towards challenging the very important 200-day SMA, around the 0.6665-60 region.