The AUDUSD pushed higher during the European session, extending its rally to the falling 100-hour moving average, currently at 0.6900 (blue line on the chart above). Sellers stepped in at that level, which also coincided with the underside of a former channel trendline, reinforcing the bearish bias and keeping sellers in control.
The pair has since rotated lower and is now eyeing Friday's low near 0.6875. Despite the pullback, the overall trading range remains very tight at just around 25 pips, leaving room for a larger directional move - on a break.
A break below the 0.6875 level, would shift focus toward the key 200-day moving average at 0.6858. That level also aligns with a swing low dating back to April 6, making it a key support target and an area where dip buyers may look to make a stand.
For buyers to regain control and improve the near-term technical outlook, the pair needs to move back above the falling 100-hour moving average at 0.6900. If that occurs, attention would turn to last Thursday's high at 0.69278. A break above that level would open the door for a test of the falling 200-hour moving average, currently at 0.69552.
