Chart AUD/USD Update: Extending gains
Cautious trade has given way to anticipated gains
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.7280~ | ** | June 2022 high | S1 | 0.7100 | congestion | ||
| R3 | 0.7200 | ** | 61.8% ret of 2021-2025 fall | S2 | 0.7050 | * | congestion | |
| R2 | 0.7187 | ** | 11 Mar YTD high | S3 | 0.7000 | * | congestion | |
| R1 | 0.7155 | * | February 2023 (y) high | S4 | 0.6960 | * | 1 Apr (w) high |
Asterisk denotes strength of level
14:30 BST - Cautious trade has given way to anticipated gains, with the break above 0.7100 putting focus on critical resistance within the 0.7155 year high of February 2023 and the 0.7187 current year high of 11 May. Initial tests could give way to consolidation, as overbought daily stochastics flatten. But the positive daily Tension Indicator and a tick higher in weekly stochastics highlight room for a later break. However, a close above the 0.7200 Fibonacci retracement is needed to turn sentiment positive and confirm continuation of April 2025 gains. Meanwhile, support is at congestion around 0.7100. A close beneath here, if seen, will help to stabilise price action and prompt consolidation above further congestion around 0.7050.