There have been two instances now that the pair has managed to pull itself up upon a test of the 0.6600 level. But in both cases, buyers have been unable to crack through key resistance from the 100 and 200-day moving averages:
AUD/USD daily chart
This is behaving as one of those pairs that the chartists and technical purists will adore. Because price action at the moment is very clearly defined between some important levels on the chart.
For one, the downside needs to break below 0.6600 again for sellers to firm up another test of the 0.6500 level as we saw towards the end of May.
Then, we also have the 100 (red line) and 200-day (blue line) moving averages continuing to keep close by and put a ceiling on any upside momentum in the past few weeks.
As such, both buyers and sellers have a clear bias area to lean on in trying to make their case.
Risk tones are looking more mixed now in European trading but the dollar is still recouping losses from Friday and that is weighing on the pair now, alongside the key resistance and large option expiries here.
But unless there is a break back below 0.6600, then any major downside momentum will also be limited for now.
It looks like we may be stuck around here for a while until we get to the US CPI data later this week.