TECHNICAL ANALYSIS
AUD/USD pair remains trapped within a narrow trading range, primarily fluctuating between 0.6360 and 0.6500. Earlier today, it briefly dipped to a low of 0.6395 before experiencing a slight rebound. However, it has failed to break out of this established range, leading to uncertainty among traders about the pair's broader direction. To gain a clearer sense of where the AUD/USD pair may be headed next, we'll need to see either a decisive move above the key resistance level at 0.6500 or a substantial breach below the lows set in September. Currently, neither of these critical levels has been convincingly breached, contributing to the prevailing uncertainty in the pair's price action.
Looking ahead, it's unlikely that the Reserve Bank of Australia (RBA) will provide substantial guidance tomorrow, as their policy decisions may not significantly influence the pair's movement. Therefore, traders may turn their attention to the upcoming US non-farm payrolls report scheduled for Friday, which could serve as a potential catalyst for a more definitive move in the AUD/USD pair. For now, traders may opt to manage their risks by considering trading strategies based on the extremes of the established range. However, beyond these range boundaries, there isn't much clarity or enthusiasm surrounding the AUD/USD pair, underscoring the importance of closely monitoring upcoming economic events for potential market-shifting developments.
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