The Aussie dollar traded higher from the 0.7060 swing low against the US Dollar. The AUD/USD pair climbed higher and broke the 0.7100 and 0.7130 resistance levels.
The pair traded as high as 0.7167 on FXOpen UK and later started a sharp decline. It broke the 0.7100 support and the 50 hourly simple moving average. However, buyers protected losses below 0.7085 and later the pair started a short term correction.
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It seems like there is a major contracting triangle formed with resistance near the 0.7120 on the hourly chart. It coincides with the 38.2% Fib retracement level of the recent decline from the 0.7167 high to 0.7089 low.
Therefore, a successful break above the 0.7120 resistance is likely to open the doors for a solid upward move. If buyers fail to gain bullish momentum, the price may decline below 0.7090 and extend losses towards 0.7060 in the near term.
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