(Fixes typo in headline) The AUD/USD pair is likely to experience a temporary pause in its bullish trend before resuming its broader upward trajectory.

While the pair held above 0.7200 on Friday, suggesting a continuation of its bull trend, momentum indicators reveal a potential need for a breather. The daily and monthly Relative Strength Indices (RSIs) are rising but approaching overbought levels, indicating that a pullback may be necessary to unwind this condition.

Further supporting the notion of a pause is the formation of May's monthly doji candle, coupled with daily charts that illustrate a consolidative phase since the pair reached a nearly four-year high earlier this week.

Despite this potential slowdown, technical signals still point to a strong underlying trend. The widening 20-month Bollinger Bands, along with rising middle and upper lines, reinforce the bullish sentiment.

Moreover, AUD/USD's ability to remain above the 61.8% Fibonacci retracement level from the February 2021 high to the April 2025 low bolsters the confidence of long-positioned investors. Once the anticipated pause concludes, several targets would emerge, including the psychological 0.7500 level, the 76.4% Fibonacci retracement at 0.7512, and the yearly high of 0.7661 established in 2022.
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(Christopher Romano is a Reuters market analyst. The views expressed are his own)