August 31, 2022 12:04 AM ET
By: AnalysisWatch
AUD/USD is hitting fresh intraday highs around 0.6880 early Wednesday morning in Europe, with the Aussie pair recovering from the 61.8% Fibonacci retracement level of the July-August uptrend.
Given the recovery moves from a key Fibonacci ratio as well as the overall weakness in the US dollar, AUD/USD is likely to extend the recent rise towards the 50% Fibonacci retracement level at 0.6910.
A downward resistance line from August 15, latest at 0.6930, limits the pair's near-term progress.
After that, the 200-SMA around 0.6950 could serve as the AUD/USD bears' last defense.
In the meantime, pullback moves would need to successfully break the 61.8% Golden Ratio at around 0.6850 to convince sellers.
Nonetheless, the mid-July swing high and the 78.6% Fibonacci retracement levels at 0.6800 and 0.6880, respectively, could test AUD/USD sellers before directing them to the July low at 0.6680.
In summary, AUD/USD is likely to remain firmer, but the upside looks limited.