- AUD/USD dribbles around four-month high, recently paring daily gains.
- Overbought RSI conditions hint at pullback but 200-DMA challenges sellers.
- 13-month-old horizontal area adds to the upside filters before calling 0.7600 on the chart.
AUD/USD bulls take a breather around multi-day high ahead of Monday’s European session.
The Aussie pair rallied to the highest levels since November while piercing a downward sloping trend line from March 2021. However, the overbought RSI conditions seemed to have triggered the latest pullback towards the 0.7400 threshold, around 0.7410 by the press time.
Even so, the 200-DMA level of 0.7325 and January’s peak of 0.7315 will challenge AUD/USD bears.
Following that, the previous month’s high near 0.7285 and September 2021 bottom surrounding 0.7170 should return to the charts.
Meanwhile, a daily closing beyond the aforementioned resistance line, near 0.7420 at the latest, will propel AUD/USD prices towards a horizontal area established from early 2021, close to 0.7560.
In a case where the quote rallies beyond 0.7560, the odds of witnessing the 0.7600 round figure can’t be ruled out.
Overall, AUD/USD remains on the bull’s radar but a pullback may not surprise traders.
AUD/USD: Daily chart
Trend: Pullback expected