AUDUSD attempted to retrace half of the downleg from 0.7833 to 0.7144, only to find strong resistance at the key psychological 0.7500 level last week. This level is also close to the 50% Fibonacci of the slide from April to May. Support is being provided by the 0.7300 level, close to the 23.6% Fibonacci.
In the short term AUDUSD has a neutral bias, with the pair trading sideways just below the 38.2% Fibonacci of 0.7408. The recent upside momentum has faded as indicated by the RSI which has flattened out and is hovering close to the 50 level.
If prices make a decisive break above the 0.7500 resistance level, this could open the way for a rise towards the 61.8% Fibonacci at 0.7570 with scope to target the key 0.7600 level.
Alternatively, if key support at 0.7300 fails to hold, this would accelerate a decline to the 0.7200 area where there was some consolidation last month. Then we could see a retest of the May low of 0.7144.
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