AUD/USD near Monday’s high, rises to 0.7170

FXStreet (Mumbai) - The AUD/USD pair rose to a session high of 0.7170, after having recovered from the low of 0.7085 seen on Tuesday.

Double top at 0.7165-0.7170?

The upside momentum appears to have stalled around 0.7170 levels as the USD strengthened against European majors. The overnight rise in the two-year treasury yield and the uncertainty ahead of the FOMC rate decision appears to have restricted gains in the Aussie.

Meanwhile, copper prices witnessed moderate strength in the European session and that could support the Australian dollar. Ahead in the day, the pair could focus on US CPI figure and the movement in the two-year treasury yield. It remains to be seen if the spot manages to extend rise above 0.7165 or turns lower to confirm a double top formation on the hourly charts.

AUD/USD Technical Levels

The immediate resistance is seen at 0.7205 (Aug 28 high), above which gains could be extended to 0.7257 (50-DMA). On the other side, support is seen at 0.7085 (Monday’s low) and 0.7049 (10-DMA).
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