The AUD/USD pair maintained a firm tone on Monday, despite a spike and subsequent pullback on Friday. There is a possibility of traders opting for partial profit-taking after a strong rally in the past two days, where the pair advanced by 2%.
Although stretched daily studies indicate a potential correction, any dips are expected to be shallow and ideally contained by the 100DMA at 0.6579. The focus is on a fresh attack at the key 0.6660/70 zone, which includes multiple tops from March, April, and May, as well as the Fibonacci 61.8% level of 0.6871/0.6362. A break above this level could lead to an acceleration towards the 0.6750 zone.
The bullish momentum is also supported by two large consecutive weekly candles, with expectations that Australia’s policymakers may adopt a more hawkish stance in the upcoming RBA policy meeting. There is still the possibility of a rate hike, which could further strengthen the Australian dollar.
Key resistance levels to watch for are at 0.6644, 0.6667, 0.6676, and 0.6750, while support levels are at 0.6600, 0.6579, 0.6556, and 0.6520.
For those interested in AUD/USD technical analysis, it is recommended to check out the key levels to keep track of the pair’s movements.