- AUD/USD marks another failure to cross 21-day SMA, monthly resistance line.
- Three-week-old falling trend line adds to the upside filters, horizontal area from early April also test bears.
- Momentum recovery needs strong push to the north for buyer’s return.
AUD/USD struggles for clear direction inside 25-pips of the important trading region below 0.7750 during early Monday.
The Aussie pair’s failure to cross a convergence of 21-day SMA and monthly trend line, around 0.7750, directs sellers toward the 50-day SMA level near 0.7725.
However, a sluggish Momentum line and a horizontal area from early April, around 0.7675, may test the AUD/USD bears before directing them to the last week’s low near 0.7650-45.
Meanwhile, an upside clearance of 0.7250 isn’t a free pass to the AUD/USD buyers as a downward sloping trend line from May 18, near 0.7775, adds to the upside filters.
It’s worth noting that 0.7820 and May’s top close to 0.7895 become tough resistances for the AUD/USD prices moving forward.
To sump, AUD/USD remains directionless and funnels down the trading range, which in turn suggests further volatility ahead.
Trend: Sideways
