Can it maintain momentum?
The Aussie dollar has been on a decent run in recent weeks against the greenback, but it’s suddenly struggling around an important area of resistance.
The pair has been in a downward trend for a little over a year. The top of the descending channel falls between the 50 and 61.8 fib levels and around 0.73, near the same level it failed at last week.
A move above here would look like quite a bullish breakout, but there may still be one more big obstacle in the way. The 200/233-day SMA band falls a little above here around the 61.8 fib and January highs.
This could be a big test for the pair and may even trigger some profit-taking on approach, which the momentum indicators could highlight.
A move above here could propel the pair higher and signal the start of a much greater uptrend.
