AUDUSD rallied sharply on Monday to rise above the key level of 0.7200 to hit its highest level since January 4 at 0.7246.
There is potential for more upside movement in this pair since the technical indicators are giving bullish signals – MACD is above zero and rising and RSI is above 50. Prices would target resistance at the 200-day moving average which is around 0.7276. Support is at the key 0.7200 level. If this support fails this would weaken the current short-term bullish bias and prices would fall towards the 100-day moving average at 0.7150.
The most important support level is at 0.7000. As long as prices hover around this level, slightly above or below it, within the range that was established since August 2015, then the trend should remain neutral.
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