AUD/USD surges to four-year peak as risk sentiment improves

The Australian dollar rose 1.2% against its US counterpart on Wednesday, reaching its highest level since June 2022.

The rally was driven by media reports suggesting that the US-Iran conflict may be nearing an end, which revived appetite for risk assets.

Today’s advance broke above a two-week consolidation range (0.7222/27) and moved beyond the upper boundary of the 20-day Bollinger Band at 0.7247, putting the pair on track to generate a fresh bullish signal if it holds above these levels on a close basis.

Daily technical indicators remain supportive, with the recent formation of a 30/55 DMA bullish crossover adding to improving momentum and strengthening the overall outlook.

The latest upside acceleration reached an initial target at 0.7271 (Fibo 123.6% projection of the move from 0.6833), with a sustained break above this level opening the way toward 0.7322 (Fibo 138.2% projection).

Former resistance at the top of the broken range has now turned into support, which is expected to hold and protect the ascending 10DMA at 0.7176.

Res: 0.7300; 0.7322; 0.7365; 0.7406
Sup: 0.7221; 0.7176; 0.7154; 0.7105