- AUD/USD bounces off a dip to near yearly lows of 0.7105.
- Aussie re-opening optimism and risk-on mood underpin the aussie.
- 23.6% Fibo level to challenge the road to recovery for AUD bulls.
AUD/USD is attempting a bounce from three-week lows of 0.7105, as it looks to recapture the 0.7200 round number.
The aussie benefits from the risk-on market mood-driven broad US dollar weakness. Further, the Australian re-opening optimism outweighs the Delta covid variant concerns, especially after the country’s PM Scott Morrison called on the state leaders to stick to their plan to re-open.
As observed on the pair’s daily chart, the bulls are attempting a bounce in the Asian trades this Monday, looking to take out the immediate resistance at 0.7172, which is the 23.6% Fibonacci Retracement level of the sell-off from the August 13 peak to the yearly lows reached last Friday.
Recapturing the latter is critical to extending the recovery momentum towards 0.7200.
The 14-day Relative Strength Index (RSI) is also rebounding from the oversold region, backing the corrective pullback.
AUD/USD: Daily chart
Alternatively, if the bulls fail to defend the intraday low at 0.7119, then a test of the multi-month lows of 0.7105 would be inevitable.
Further south, sellers could then aim for the 0.7050 psychological barrier.
