The high today touched 0.7425
From the hourly chart, Friday's high of 0.7416 appears to be the resistance level that is holding the pair back from extending its gains for now. The chart here is from Bloomberg and the close there is slightly different to what other charts may be showing. My broker has the high only at 0.7410 so it doesn't look to be too much of a double-top pattern in the chart there.
But nonetheless, resistance around the levels seen there surely has played a part for sellers to lean on for the moment.
However, price has moved above the 100-hour (red line) and 200-hour MAs (blue line) and that means near-term bias is more bullish. Earlier retail sales data and the fact that the dollar remains on the back foot in trading today provides a double whammy for AUD/USD bears.
So, what's next for the pair?
Looking at risk sentiment today, investors are still cautious after US equities got caught by further negative news in the US-China trade spat. And that is still setting the tone in trading so far.
But the aussie is still holding well despite that, and the dollar's weakness appears to be the major overriding factor so far today - so that will be a theme to watch out for in European trading later.
With thin liquidity set to prevail for majority of trading today, technical levels will come in handy to define and limit your risk in trading.
For downside levels, the 200-hour MA @ 0.7385 and the 100-hour MA @ 0.7369 will be key support levels to eye for. Meanwhile, topside levels will see resistance again at 0.7416 with the day's high at 0.7425 and the 22 June highs near 0.7440 levels being key near-term resistance points.
