The AUDUSD pair is trading within narrow range in early Monday, holding in thick hourly cloud, with neutral near-term studies, showing no clear near-term direction. The bigger picture shows that bulls on daily chart might be running out of steam, following strong fall last Thursday and limited subsequent recovery attempts. Friday’s bounce was capped by 20SMA and failed to sustain break above bull-trendline, drawn off 0.7807 (15 Aug trough). Similar action was seen in early Monday, with upside attempts stalling below 20SMA, with 10/20SMA bear-cross forming and raising downside pressure. This keeps the downside vulnerable for another probe below cracked 0.7929 support (Fibo 61.8% of 0.7807/0.8124 upleg) and 0.7907 pivot (last Friday’s low/daily cloud top) break of which would risk test of 0.7870 higher base and possible extension towards key short-term support at 0.7807. Conversely, firm break above pivotal resistance zone at 0.7985/0.8000 (10/20SMA’s/converged daily Kijun-sen/Tenkan-sen) would shift focus higher.
Res: 0.7985, 0.8000, 0.8028, 0.8035
Sup: 0.7946, 0.7929, 0.7907, 0.7865
