AUD/USD buyers and sellers continue to do battle in a narrow range
I think the pair provides a good depiction of the indecisiveness of risk assets to start the week. Sellers built some momentum yesterday in driving price down towards a test of the key hourly moving averages but fell short of breaking below the 200-hour MA (blue line).
Price has since rebounded slightly towards 0.6770-80 but not really at a level that suggests any significant momentum to the upside.
For buyers, despite keeping near-term control, they need to try and break above the 0.6800 handle as well as the 61.8 retracement level @ 0.6809.
Meanwhile, for sellers, they need to drive price back below the key hourly moving averages @ 0.6756-67 to regain near-term control and build further momentum from there.
Otherwise, price action is very much caught in the middle for the time being as swing traders await a firm break on either side to go chasing.
Of note today, there are decent-sized expiries at the 0.6800 handle likely to help play a part in limiting price gains in the sessions ahead.