The AUDUSD pair remains range-bound between 0.6400 and 0.6700, currently trading near the upper end of this range around 0.6636. Since June, the pair has been consolidating within this broad band, reflecting ongoing market uncertainty and a lack of clear directional momentum.

In recent weeks, price action has shown a modestly bullish tilt. The pair has moved toward the mid-September highs and the yearly peak set on September 17 just above 0.6700, a key resistance level. Last week’s high at 0.66853 further suggests that buyers are attempting to build momentum toward this longer-term barrier.

Technically, the recent rise has been constructive. The pair managed to move above a critical swing area between 0.66247 and 0.6635 and clear the October 29 high at 0.6617. During late US trading into the early Asian session, price pulled back to test 0.6617, which acted as a short-term support level as buyers stepped in at this point.

Following this bounce, the AUDUSD pushed back above 0.6635 and extended toward a nearby swing-area target around 0.66588. Sellers emerged there, forcing a pullback, and the pair has since dropped back into the 0.66247 to 0.6635 zone. This movement highlights the ongoing struggle between buyers and sellers.

For traders looking to maintain a bullish short-term bias, the pair needs to hold above the 0.66247 to 0.6635 zone, ideally staying above 0.6617. Holding these levels would keep the upside outlook intact and allow for a further advance toward resistance. However, a failure to sustain these support levels would suggest a failed breakout and increase the probability of a deeper corrective decline within the broader range.

Forex traders should monitor these key levels closely for signals of either continued upward momentum or the potential for a more significant downside correction.

Original Source: Greg Michalowski of investinglive.com