AUD/USD Edges Lower as USD Gains Traction Amid Middle East Crisis

The AUD/USD pair pulled back from its highest level since June 17 due to modest US Dollar strength, but remains poised for further gains. Spot prices currently trade just below 0.7050.

The recent bounce from the 200-day Simple Moving Average (SMA) suggests a constructive setup, indicating that dips could attract buyers. The Relative Strength Index near 58 suggests momentum without entering overbought conditions.

However, traders might wait for follow-through buying beyond the 50% level at 0.7070 before positioning for further gains. A breakout above this level would expose the 61.8% level at 0.7120 and then the 78.6% retracement at 0.7191.