AUD/USD Bulls Hit Pivotal Breakout Zone

The Australian dollar's seven-week rally is facing resistance at a crucial breakout zone where three Fibonacci markers converge. According to Michael Boutros, Senior Market Analyst at StoneX Media, this key level has been acting as overhead resistance for three weeks running. The broken slope of the uptrend lost in June now intersects with a significant retracement level.

Momentum readings are at their strongest since February, but price has yet to close above the level that would confirm the resumption of the uptrend. Behind the move, traders have pushed out their expectations for the Federal Reserve's next step, leading to a corresponding response in the U.S. dollar.