AUD/USD Technical Analysis: Aussie Narrowly Exposes 0.73

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Talking Points:

• AUD/USD Technical Strategy: Flat
• Aussie Dollar soars, then gives up most gains on upbeat 1Q GDP data
• New short entry setup sought after open trade narrowly triggers stop-loss

The Australian Dollar surged upward against its US namesake after an unexpectedly strong set of first-quarter GDP figures weighed against RBA rate cut bets. While the pair gave up most of its intraday advance, a narrow break of near-term resistance hints some further gains may be ahead.

From here, a daily close above the 23.6% Fibonacci retracement at 0.7308 opens the door for a test of the 38.2% level at 0.7409. Alternatively, a reversal back below the 14.6% Fib at 0.7246 paves the way for another test of the May 24 low at 0.7145.

The short AUD/USD trade triggered at 0.7187 was narrowly stopped out on daily close above 0.7243. The Aussie’s inability to maintain upward momentum despite a strong fundamental jolt speaks to significant underlying weakness and another opportunity to sell the pair will be sought in the days ahead.