Michael_Macdonald-XATSUK

AUD/USD settling into consolidation as investors turn cautious

FX:AUDUSD   Australian Dollar / U.S. Dollar
AUD/USD is extending the bounce from the 0.7311 monthly low of 21 November, but difficulty is seen sustaining further gains as short-term studies turn mixed.

Congestion around 0.7600 is expected to provide a strong barrier, as investors remain cautious, with prices to settle into consolidation above 0.7305.

An unexpected break below 0.7311, however, will turn sentiment negative once again, with further slippage below the 0.7280 retracement and 0.7283 low of 16 June opening up the 0.7210 retracement. Critical monthly support is at the 0.7142 low of May.