NAB discusses AUD/USD technical outlook and highlights the importance of a monthly close below 0.7695 for directional bias.
"The bounce into the end of last week implies that the immediate risk this week is for a further short squeeze. We would not anticipate such a squeeze breaking 0.7690/10. ST and MT momentum bias remains comprehensively negative," NAB notes.
"While the monthly chart is not setting up for a significant close, a close below 0.7695 will be extremely significant / bearish on the quarterly chart. Such an outcome will be cause to consider that we have seen the high for 2021 and multi-month risk is lower," NAB adds.