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Aussie early June’s daily chart is pointing to overbought conditions. Yohay Elam, an analyst at FXStreet, takes a look at the AUD/USD technical picture which hints a correction.

Key quotes

“The Aussie is overbought – according to the Relative Strength Index on the daily chart, which is well above 70. That implies a correction. The upside move kicked off after AUD/USD broke above the uptrend channel and topped the 200-day Simple Moving Average. While upside momentum persists, a fall is more likely before rises can resume.” 

“The fresh June high of 0.7012 is the immediate resistance line. The next cap is 0.7082, the high point in July 2019. Breaking above that level would open the door to 0.72, recorded in early 2019.”

“Some support awaits at 0.6940. It is followed by 0.6870, which capped the pair in February and 0.6690, a stubborn resistance in May.”