AUD/USD looks for bullish breakout but sellers aren't done and dusted just yet

Technical Analysis

Author: Justin Low | audusd

The daily close will be important to watch for AUD/USD

AUD/USD D1 21-03
The aussie is among those that benefited the most from the Fed's more dovish message yesterday as a tumble in Treasury yields helped to ease concerns about Australia's own yields problem over the past week. That saw AUD/USD gain in overnight trading but the daily close was kept contained by the trendline resistance as shown above.

However, price is breaking to the upside today after another decent labour market report with AUD/USD rising to a high of 0.7168 earlier before settling close to 0.7150 now. Of note, price is looking for a break above the trendline resistance but is encountering sellers at the 100-day MA (red line) @ 0.7160.

With the dollar still holding weaker on the day, this is an opportunity for buyers to capitalise on the more bullish near-term momentum in AUD/USD. Hence, the daily close here will be key and buyers need to ensure a break above the trendline resistance for starters before attempting to take out the 100-day MA.

That will justify a further upside move for the pair towards resistance around 0.7207 and the 200-day MA (blue line) @ 0.7217 at least.

Otherwise, just be wary of a potential retracement/reversal as I reckon the dovish tones surrounding the dollar may not last too long if it isn't backed up by weaker economic data in the coming sessions.

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