AUD/USD extends gains on weaker dollar as buyers look to seize near-term control

Technical Analysis

AUD/USD touches a session high of 0.6984


Price is now testing the 200-hour MA (blue line) as buyers are looking poised to try and establish further upside momentum in the pair amid a weaker dollar across the board. If buyers can break above that, the near-term bias will then turn more bullish with resistance next seen closer to offers around 0.7000.

The dollar is still holding softer in the European morning after Fed chair Powell’s testimony yesterday and so far there hasn’t been much other focus in trading today besides that sentiment ahead of the second day of his testimony and US CPI data later.

Looking at the bigger picture for AUD/USD though:

AUD/USD D1 11-07

Buyers may be able to gather reprieve on the back of a weaker dollar for now but key resistance still lies in the form of the 100-day MA (red line) @ 0.7024 as well as the trendline resistance at 0.7050.

Unless buyers have reason to build momentum to break above those levels, sellers will be poised to lean on those levels to drive price back lower over the medium-term.

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