Weak data from Australia’s largest customer and RSI overbought levels indicate another pullback from important resistance. Numerous support levels at the downside may cause some challenge for sellers.
Considering the technical reasons affecting the weak imprints of China’s industrial profits, the AUD/USD pair is trying to overcome the 0.6935/40 resistance during the early Asian session this Monday.
Taking into account both the fundamental and technical signals indicating the next pullback of the pair from the important resistance, 0.6900 and 0.6880 again attract the attention of the market.
AUD/USD technical analysis
The Aussie dollar started a strong upward move after forming a support base near the 0.6870 level against the US Dollar. The AUD/USD pair gained bullish momentum and broke the key 0.6900 resistance level.
The pair even climbed above the 0.6920 level and settled well above the 50 hourly simple moving average. It traded as high as 0.6935 and it is currently consolidating gains.
On the downside, there is a strong support forming near the 0.6925 level and the 38.2% Fib retracement level of the last wave from the 0.6911 low to 0.6935 high.
As long as the pair is holding the 0.6925 and 0.6922 support levels, it is likely to resume its upward move. A clear break above the 0.6935 resistance will most likely open the doors for more gains in the near term towards 0.6950 or 0.6960.