The 0.7150 resistance in AUD/USD is proving a tough nut to crack but a break higher still appears likely.
U.S. interest rates have risen across most maturities which has led to marginal gains in the greenback against most major currencies.
AUD/USD bulls are also being corralled as they await new from the U.S.-Sino trade talks currently taking place.
The market is expecting only minor progress in the current talk. If talks result in major progress, risk assets should extend their Powell-induced gains.
AUD/USD is then likely to clear 0.7150.
Technicals suggest resistance near 0.7150 will eventually break.
AUD/USD could now be consolidating gains after the sharp rally from 0.6715.
Consolidation is a healthy development for trends and the phase typically resolves in the direction from which it was entered.
Monthly charts show RSI is biased up and a bull hammer in place while daily charts show AUD/USD holding above the 10- and 21-DMAs.
Bulls will initially target the 0.7228/47 zone on a break of 0.7150.
The December 14 and 13 highs as well as the 76.4 percent Fib retracement of 0.7394-0.6715 sit there.
The 200-DMA and 0.7390/00 zone are targeted thereafter.
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