“¢ The AUD/USD pair built to its recent recovery from multi-month lows support, near the 0.6865 region and climbed to three-week tops during the mid-European session on Monday.
“¢ The intraday positive move helped the pair to finally break through the 0.6935-40 supply zone and find acceptance above 23.6% Fibo. retracement level of the 0.7204-0.6862 downfall.
Technical indicators maintained their bullish bias on hourly charts and have just moved out of the bearish territory, reinforcing the near-term constructive set-up and setting the stage for a further near-term appreciating move.
The pair now seems set to aim towards reclaiming the key 0.70 psychological mark – representing 38.2% Fibo. level, though repositioning trade ahead of Tuesday’s RBA monetary policy update might cap any strong up-move.
In the meantime, the 0.6980 region – 200-period SMA on the 4-hourly chart, might act as an intermediate resistance as market participants now look forward to the release of US ISM manufacturing PMI for some impetus.
AUD/USD 4-hourly chart
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