AUD Bulls Stall at 0.7200, Still Eyeing Brief Push Higher

AUD/USD has seen three consecutive daily gains, but momentum is showing negative divergence. The pair has stalled just under the resistance level of 0.7200. Despite this, Quek Ser Leang and Lee Sue Ann from UOB see scope for a brief push above 0.7200, although it's unlikely to be sustained or extend to 0.7220.

On a one-to-three-week view, the analysts predict potential for a test of 0.7220 before pullback risks increase. The AUD has edged up to within a couple of pips of the major resistance at 0.7200, printing a high of 0.7198 on Tuesday.

Although momentum indicators are showing negative divergence, there is still scope for the AUD to rise above 0.7200. However, it's unlikely to maintain a foothold above this level. Any further advance is also unlikely to reach 0.7220. Support is at 0.7185; a breach of 0.7175 would indicate that the immediate upward pressure has eased.