The Australian dollar extended its consolidation phase against the US dollar, closing at 0.7165 with improving short-term momentum, according to United Overseas Bank currency strategists Quek Ser Leang and Lee Sue Ann. The currency pair is now testing critical resistance at the 0.7200 level, marking a pivotal technical threshold for the cross.
The upward movement reflects strengthening near-term dynamics for the aussie, which has been gradually building positive momentum in recent sessions. Traders are closely monitoring whether the pair can breach and hold above 0.7200, which would signal further upside potential. A successful break could open the door to additional gains, while failure to clear this resistance may trigger renewed selling pressure and a return to recent consolidation ranges.
FXnCO Insight
AUD/USD traders should watch for a confirmed close above 0.7200 as the key trigger for long positions, while maintaining tight stops below 0.7165 to manage downside risk if the resistance holds.
Source: FXStreet