FX Monthly (Jul ’16)
AUD/USD is finding support at congestion around 0.7200, with prices posting a steady bounce to further congestion around 0.7500. There is potential for consolidation in the coming weeks, as momentum studies remain mixed, but still further gains are looked for as the Tension Indicator continues to strengthen and background studies improve.
Resistance is at the 0.7650~ high of June and extends to critical reactions at the 0.7830/50 retracements and the 0.7835 high of April. A subsequent break will confirm extension of the January rally, further improve investor sentiment, and open up congestion around 0.8000.
An unexpected close below 0.7200 will turn sentiment cautious, and open up a deeper reaction towards 0.7000 where consolidation should unfold. Critical support at the 0.6824 low of January is not seen tested.
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