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AUD/USD extends rally, eyed for a test of 0.7277
Analysts point to a firm break of key levels, with upside momentum tied to the 55 W EMA holding near 0.6870.
Action Forex said AUD/USD’s rally that began around 0.6864 continued and accelerated last week, keeping an initial upside bias for the pair.
The outlet said a firm break of the 161.8% projection level, from 0.7026 toward 0.7183, would raise the odds of a retest of 0.7277, while a fall back below 0.7128 would turn the near-term bias neutral and encourage consolidations.
Looking further out, Action Forex described price action from the 0.7277 medium term top as part of a correction to the rise from 0.5913, though it said a deeper decline cannot be ruled out.
The analysis added that a firm break of 0.7277 would target 0.8006, and that the long-term outlook stays favored as long as the 55 W EMA, currently around 0.6870, holds.