- A modest USD pullback from multi-month tops assisted AUD/USD to gain traction on Wednesday.
- The upbeat US economic outlook should help limit the USD downside and cap gains for the major.
- The US economic docket, US President Biden's spending plan eyed for some trading opportunities.
The AUD/USD pair edged higher during the early European session and refreshed daily tops, around the 0.7615-20 region in the last hour, albeit lacked follow-through.
Having shown some resilience below the 0.7600 mark, the pair managed to gain some positive traction on Wednesday and for now seems to have stalled the overnight retracement slide from one-week tops. The US dollar witnessed some profit-taking and moved away from multi-month tops. This, in turn, was seen as a key factor that extended some support to the AUD/USD pair, though any meaningful recovery still seems elusive.
It should, however, be noted that a clear downside break of 0.7540 won't resistance in challenging December 21, 2020 low near 0.7460.On the contrary, an upside clearance of 0.7665 will confirm the bullish chart pattern and theoretically propels the quote towards February's high of 0.8008.Though, January's peak of 0.7820 and a five-week-old horizontal area around 0.7855-60 can offer intermediate halts during the rise.
