- AUD/USD consolidates the biggest daily jump since June around two-week top.
- Upbeat Momentum, a clear break of 20-DMA keep buyers hopeful.
- Bears need to break the 23.6% Fibonacci retracement level to retake controls.
AUD/USD eases from the highest levels in two weeks to 0.7305, down 0.10% intraday, heading into Monday’s European session. In doing so, the Aussie pair seesaws around a downward sloping trend line from early June.
Given the quote’s sustained break of 20-DMA, amid an upbeat Momentum line, AUD/USD prices are likely to remain firmer. However, a daily closing beyond 0.7310 becomes necessary to convince the bulls.
On the contrary, a pullback below the 20-DMA level of 0.7300 may recall the 0.7280 number back to the chart but any further weakness will be challenged by 23.6% Fibonacci retracement of June–August downside, around 0.7225.
Should the AUD/USD bears keep reins below 0.7225, 0.7160 and the yearly low of 0.7105 will be in focus.
Meanwhile, a daily closing past 0.7310 will initially aim for August 11 top surrounding 0.7390 before challenging 61.8% Fibonacci retracement level near 0.7420.
AUD/USD: Daily chart
Trend: Pullback expected
