- AUD/USD trades higher on Wednesday in the Asian session.
- Upbeat Australian CPI figures fuel the upside momentum in the pair.
- Additional gains are likely for the pair if price decisively recaptures 0.7550.
AUD/USD extends the previous day’s gains on Wednesday. The pair started the fresh trading week on a higher note after hitting a low 0.7452, a week ago. At the time of writing, AUD/USD is trading at 0.7522, up 0.31% for the day.
AUD/USD daily chart
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On the daily chart, the AUD/USD pair has been facing a strong resistance barrier near 0.7550, just below the 200-day Simple Moving Average (SMA) at 0.7561. The spot has posted strong gains since the beginning of the October series from the lows of 0.7191.
A daily close above the multi-month high near 0.7550 would fuel another round of buying opportunities in the pair. The first upside target would appear at the psychological 0.7600 level.
The Moving Average Convergence Divergence (MACD) trades into the overbought zone. Any uptick in the MACD would open the gates for the 0.7650 horizontal resistance level, followed by the June,16 high of 0.7717.
Alternatively, if the price reverses direction, in that case, it could test Tuesday’s low of 0.7483, followed by the 0.7450 and the 0.7400 horizontal support zones respectively.