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AUD/USD Triple Top Pattern In Focus - Who's Up for Breakout! 

EagleFX

The AUD/USD pair closed at 0.65236 after placing a high of 0.65270 and a low of 0.64097. Overall, the AUD/USD pair remained bullish throughout the day. A rally in the risk-on market sentiment caused a surge in the prices of AUD/USD pair on Monday. However, the higher AUD should not be expected to remain the same as the heightened geopolitical tension weigh heavily on AUD.

Speaking of geopolitical tensions, the US and China have come to an end of a renewed trade war due to US accusations on China. The US has now declared that it was prepared to cut off its ties with China, which would benefit about 500 million bloodsheds.

Australia's relation with China was also disturbed during the past week and put pressure on the Aussie pair. However, on Monday, the pair AUD/USD rose above 0.6500 level on the back of the risk-on market sentiment and increased hopes of the vaccine. The US dollar was weak during the trading session on Monday after losing its safe-haven status lost traction. The signs of making blood level containing virus-fighting antiviral vaccine after human trials showed positive initial results.

Meanwhile, analysts think that signs of vaccine and new hopes might raise Aussie on the back of increased risk-sentiment, but the tough time of Aussie remained ahead due to trade-war signals from the biggest nations in the world.


Daily Technical Levels

Support Resistance

0.6446 0.6565

0.6368 0.6606

0.6326 0.6684

Pivot Point: 0.6487

The AUD/USD pair is holding below the triple top resistance level of 0.6567 area. This level has extended strong resistance to Aussie on April 29 and May 11. Bullish trend continuation of Aussie may lead the AUD/USD prices towards the next resistance level of 0.66150, while support continues to hold around 0.6515 level. The candlestick analysis suggests chances of selling in Aussie as the pair has closed a tweezers top lookalike pattern on the 4-hour chart around the area around 0.6514. A bearish breakout of 0.6514 level may lead Aussie prices lower towards 0.6480 and 0.6440 level today. Conversely, a bullish crossover of 0.6568 may hit the target level at 0.6615. Good luck!

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