The Australian Dollar fluctuated in a 55-pip range on Monday and continues to hold within the parameters of US$0.6900 to US$0.7000.
At present, the AUD/USD pair is directionless as its struggles to make a decisive move.
Although the technical assessment is breaking down from a daily assessment, the bulls are still determined to in attempting to trigger the stop-losses potentially holding above US$0.7000-05.
On Monday, California’s Governor Gavin Newsom ordered state-wide closure of all indoor operations at restaurants, bars, movie theatres, zoos and museums, with other businesses like gyms and hair salons being required to close their doors in counties on the state’s watch list following a recent spike in coronavirus cases.
Florida had more new cases in one day than the entire U.S. did in about two months.
Investors have also been keeping an eye on threats of renewed U.S. and China tensions after President Donald Trump said on Friday that there was no scope for a phase-two agreement on trade between the two countries, saying Washington’s relationship with China had been “severely damaged” by the coronavirus pandemic, which the administration has sought to blame on Beijing.
It is assessed ‘technically’ that the downward case is expected to strengthen if the bears get the upper hand and break the US$0.6915-25 support.
A decisive break here would view US$0.6855 as the next potential target. Reassess from there.
As mentioned, it is assessed, stop-losses are likely to be accumulating above US$0.7000-05, which in terms if breached, could see a spike to are of US$0.7025-55 before reversing.