AUD/USD: Bulls Reclaim Control Following a Healthy Correction

AUD/USD is on the front foot this Monday, extending its advance into a third consecutive day and pressuring the pivotal barrier at 0.6680, the recent range ceiling.

This fresh strength enhances the near-term outlook, supported by the formation of a higher base at 0.6590 (the double-bottom from May 24 and 30), indicating a healthy correction from the May 16 high of 0.6714, the highest since mid-January.

The technical picture on the daily chart is positive, characterized by strong bullish momentum and moving averages in a bullish configuration, with multiple bull-crosses. A close above the converged 10/20 DMAs at 0.6642 is the minimum requirement to sustain the fresh bullish trend. A sustained break above the 0.6670/80 zone (the 61.8% Fibonacci retracement of the 0.6714/0.6590 range and the tops from May 31 and 28) would confirm the reversal and open the way for a full retracement of the 0.6714/0.6590 corrective leg.

Res: 0.6680; 0.6714; 0.6743; 0.6761
Sup: 0.6642; 0.6626; 0.6590 0; 6558