The Australian dollar is treading water against the greenback on Monday, failing to extend modest early gains as the pair remains range-bound around the key 0.7000 psychological level during Asian trading hours. Despite opening with a bullish gap, AUD/USD has struggled to build momentum, with traders eyeing the 38.2% Fibonacci retracement level as the next critical resistance threshold.
The consolidation pattern suggests market participants are awaiting fresh catalysts before committing to directional bets. The 0.7000 handle has proven a stubborn pivot point, with neither bulls nor bears able to establish control in the current session. Currency traders and forex brokers should monitor whether buyers can muster enough strength to clear the Fibonacci resistance, which would likely trigger technical follow-through buying and potentially open the path toward higher levels.
FXnCO Insight
Watch for a decisive break above the 38.2% Fibonacci level to signal renewed bullish momentum, otherwise expect continued choppy trading around 0.7000 until macro catalysts emerge.
Source: FXStreet