AUD Bulls Challenge 0.7200 vs USD, Momentum Indicators Show Caution
The Australian Dollar (AUD) is testing its resistance against the US Dollar (USD), but the momentum indicators are showing negative divergence. According to Quek Ser Leang and Lee Sue Ann from United Overseas Bank, the pair stalled just under the 0.7200 level after a third consecutive daily gain.
The AUD/USD pair reached a high of 0.7198 yesterday, but it's unlikely to maintain a foothold above this level. The analysts see scope for a brief push above 0.7200, but any further advance is unlikely to reach 0.7220.
On a one-to-three-week view, the analysts believe that there is potential for a test of 0.7220 before pullback risks increase. They highlight that support is at 0.7185, and a breach of 0.7175 would indicate that the immediate upward pressure has eased.