AUD/USD bears made three attempts to break 0.6400 but failed and now bulls have a good chance to rally the pair near 0.6700.
Comments from Fed Chairman Powell nL1N2CZ09O, an easing of Australia-Sino trade tensions nB9N2CG051 Click here and hopes for COVID-19 vaccines nL4N2D02XU Click here helped AUD/USD rally above 0.6515 today.
The price action now has technicals highlighting upside risks.
AUD/USD trades above the 10- and 21-DMAs, daily RSI is rising while monthly RSI is poised to turn higher and a bull pennant is forming on daily charts.
A break of the pennant top would suggest bigger gains are due.
Bulls will have to be cautious of May global PMIs later this week.
Estimates call for improvement from April results.
Upside surprises are possible as economies shuttered by COVID-19 continue to reopen.
Upbeat results would bolster AUD/USD bulls' confidence, potentially paving the way for a test of the 0.6665/0.6685 zone, where the 200-DMA, 76.4% Fibo of 0.7032-0.5510 and April monthly high sit.
In order for AUD/USD bears to take back control a break of key support near 0.6370 is needed.
aud/usd Click here