- AUD/USD snaps four straight days of losing streak amid a strong recovery in the risk sentiment.
- The set-up warrants some caution for bulls amid the prevalent buying interest around the USD.
A strong recovery in the global risk sentiment assisted the AUD/USD pair to catch some fresh bids on Monday and snap four consecutive days of losing streak.
The pair climbed fresh session tops, around the 0.6085 region in the last hour, with bulls now looking to extend the momentum beyond 100/200-hour SMA confluence region.
Technical indicators on hourly charts have been gaining some positive traction and support prospects for an extension of the pair’s intraday appreciating move.
Meanwhile, oscillators on the daily chart are yet to recover fully from the negative territory and warrant some caution before placing any aggressive bullish bets.
The prevalent bullish sentiment surrounding the USD, further supported by a goodish pickup in the US Treasury bond yields, might cap any further move up.
Hence, it will be prudent to wait for some strong follow-through buying, possibly beyond the 0.6100 round-figure mark, to support prospects for additional gains.
AUD/USD 1-hourly chart
Technical levels to watch