• AUD/USD traded on the back foot in the US session on Monday.
  • Mixed oscillators on hourly/daily charts point to a cautious approach.

AUD/USD struggled to capitalize on a reasonable intraday bounce of around 40-45 pips. The pair is trading mildly lowerat0.7120-25.

The pair showed some resilience below the 100-hour EMA, attracting some dip-buying close to 0.71 round-figure. Still, risk aversion is benefitting the safe-haven USD, capping attempts to advance.

The recent rally across the past two weeks has failed several times near multi-day-old ascending trend-line resistance. Expectations that the RBA will ease further in November is likely a key factor limiting gains for AUD/USD.

Mixed technical indicators on hourly/daily charts indicate a cautious approach should be adopted. Some follow-through selling below the 0.71 before placing any short positions.

AUD/USD could be vulnerable and target 0.7025-20 horizontal support. A break-through here could open the door to the key 0.7000 psychological mark.

Immediate resistance can be seen at 0.7145 horizontal level A move higher could bring resistance at the mentioned trendline 0.7170-75 into focus.