AUD/USD runs higher and back into April–June swing area — can buyers keep the momentum going?
Key Takeaways
- •AUD/USD climbed on Monday, August 17, and reached an intraday high of 0.7129.
- •The pair broke above the 0.7077 to 0.70908 swing area and moved back into an April-to-early-June trading range.
- •Technical analysis says the bullish bias remains intact while AUD/USD stays above the breakout zone.
- •The next upside reference level is 0.7200, the top of the broader April-to-June range.
- •A move back below 0.7077 to 0.70908 would undermine the current bullish setup.
AUD/USD — the Australian dollar against the US dollar, a pairing often nicknamed the Aussie and one of the most actively traded major currency pairs in the global forex market — pushed higher in trading on Monday, August 17, extending above the prior week's high and breaking through a swing area between 0.7077 and 0.70908. The day's high reached 0.7129, adding to the bullish technical picture.
The advance carried the pair back into a broader swing zone running from April through early June, a stretch in which much of the price action was contained between 0.7077 and 0.7200. In technical-analysis terms, a swing area is a price band where a market repeatedly traded in the past, and once price returns to such a zone, traders watch to see whether the old levels now act as support or resistance. That old April-to-June swing area spans 0.7077 to 0.7200, and from a technical perspective, staying above 0.7077 keeps the bias on the bullish side.
As long as the rate can remain above the 0.7077–0.70908 breakout area, buyers remain firmly in control, according to the analysis. Holding that support would keep the focus on further upside within the broader range toward 0.7200, the upper boundary of the April–June band and the next natural reference point for gauging whether the momentum holds. Slipping back below the breakout zone would remove the condition underpinning that bullish bias, which is why the 0.7077–0.70908 band is the key level to watch from here.
The move also has relevance beyond spot traders: the Australian dollar is widely viewed as a commodity-linked and risk-appetite-sensitive currency, given Australia's role as a major exporter of raw materials such as iron ore. That reputation is a large part of why technical milestones like Monday's return to a two-month-old trading range draw attention across the wider currency market.
In the accompanying video, the analyst breaks down the technical levels driving AUD/USD, explains why the bias remains tilted in favor of the buyers, and outlines what needs to happen for the upside momentum to stay intact.
Source: investingLive