Weekly Chart AUD/USD: Settled back from test of .7200

Settled back from test of the .7200 level as prices unwind overbought daily studies and consolidate strong gains from the June low. The resulting outside range on daily chart suggest room for deeper pullback to strong support at the .7100/.7080 congestion and May low.

Would expect the latter to underpin but weekly studies are stretched as well and threatens break here to open up room for deeper corrective pullback. Below .7080 support will open up room to .7050 congestion and the strong support at the .7025/.7000 congestion area. Corrective pullback are expected to give way to fresh buying interest later to extend the June gains.

A later break above the .7200 level will extend the June gains and turn focus to the .7278, May current year high. Would expect reaction on retest here but potential will be seen for a later break to extend the bull trend from the April 2025 year low. Higher will see scope to retrace losses from the 2021 year high to the .7400 level and .7510, 76.4% Fibonacci retracement.