The AUDUSD broke sharply higher yesterday, extending above the April and May swing highs between 0.7221 and 0.7227 — a bullish technical breakout that shifted momentum further in favor of the buyers. The rally carried the pair to a session high of 0.72769, pushing into a key swing area resistance zone from May 2022 between 0.72656 and 0.7283. Sellers leaned against that historical resistance area, likely defining risk against a break above the ceiling, and helped trigger a corrective move lower.
Into the close of the North American session, the pair rotated back down toward 0.7222 — right near the prior breakout zone between 0.7221 and 0.7227 from the April/May highs this year. Importantly, buyers successfully defended that former resistance area as new support, keeping the broader bullish bias intact. As long as the price remains above that zone, buyers remain more in control.
For sellers to regain momentum, the pair would need to break back below the 0.7221–0.7227 support area and then move beneath the rising 100-hour moving average at 0.7209 and the 200-hour moving average at 0.7189. A move below those key technical levels would tilt the short-term bias back toward the downside and increase bearish control.
Currently, the AUDUSD is trading between two key technical boundaries: support near 0.7221 and resistance around 0.7277. A sustained break above 0.7277 would strengthen the bullish case and open the door for a run toward the next upside target near 0.7316 — another swing area from 2022. Beyond that, there is relatively little resistance until the 0.7500 level.
Fundamentally, the Australian dollar has also been supported by this week’s hawkish move from the Reserve Bank of Australia, which raised interest rates by 25 basis points for the third consecutive meeting
