AUD/USD Pair Started Consolidating In A Broad Range Below 0.7300

Technical analysis of Forex market

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.

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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.