- AUD/USD is consolidating after the recent substantial gains.
- Traders await the RBA policy on Tuesday.
- Bulls are in command and could push the pair further up.
The AUD/USD is in a consolidation mode today after posting recent gains touching the highest level since December 2018. The pair was lingering between minor gains and losses through the early European session.
Investors might not be ready to place new bets as the Reserve Bank of Australia policy decision is on Tuesday.
AUD/USD broke a five-week-old ascending trend-channel resistance showing that the near-term is in favour of the bulls. The RSI on the four-hour daily chart is now above 70, indicating a slightly overbought situation, asking for a cautious approach from the bulls.
The pair might scale past 0.7400, for the first time since July 2018 and take the gains to 0.7450-60 congestion zone.
The said channel resistance breakpoint – now near the 0.7400, could give vital support at present. Further buying is expected even if the AUD/USD falls below 0.7400 and could limit the downside near the .7340-35 horizontal zone.