This is quite a classic, in that the pair is very much well respecting key technical levels since trading last month. At each and every attempt to push higher, the pair is running into key resistance near 0.6800 from the 61.8 Fib retracement level at 0.6790 as well as the 100-day moving average (red line).
And at each try, buyers have failed to get above that and it includes the push higher earlier today. That before the current drop to 0.6730 as sellers start to pressure price action back towards the 200-day moving average (blue line) at 0.6723 instead.
A break below the latter will see sellers regain more momentum in trying to push for a further downside move towards the March and April lows under 0.6600.
In the bigger picture, you can see that price action is clearly contained by the key resistance region outlined above and the support layers mentioned.
With the Fed now set to head to the sidelines, the dollar might find it tough to gather any strong tailwinds moving forward. But at the same time, further global economic worries are a bad thing for the aussie and risk as well so there's that to consider.
It's pretty much a balancing act at the moment until markets can sort their feet out.
