The Aussie Dollar recovered and settled above the 0.7250 resistance level against the US Dollar. The AUD/USD pair started consolidating in a broad range below the 0.7300 resistance zone.
It seems like the pair is trading inside a contracting triangle pattern with resistance near 0.7288 on the hourly chart. It is now trading above the 50 hourly simple moving average and likely preparing for the next move.
If there is a downside break below the triangle support at 0.7265 on FXOpen, there is a risk of more losses below the 0.7250 support level. The next major support is near the 0.7200 level.
Conversely, the pair could break the triangle resistance and 0.7295 to start a strong upward move. Having said that, a close above the 0.7300 level is needed for a sustained upward move in the near term.
