However, this doesn’t change the fact that the technical predicament for the dollar remains extremely poor at the moment. There are major technical pushes all across the board and it may be just a matter of time before the selling resumes. And that means AUD/USD is looking more poised right now to take out the June highs.

For now, that particular resistance region near 0.6900 is helping to limit the upside move this week. The pair is down 0.2% to 0.6873 but unless there is a cause for turnaround in the dollar momentum, the balance of risks are still favouring a move higher at this point.

Above the June highs, there is further resistance from its 100-week moving average at 0.6956 before potentially revisiting key resistance and offers at the 0.7000 mark next.

This article was written by Justin Low at www.forexlive.com.