AUD/USD has lost some momentum ahead of the 0.70 psychological resistance level

• AUD/USD is trading over 0.50% higher on Tuesday as risk sentiment remains positive.
• After breaking the triangle structure the price might come back to test it again.

AUD/USD 4-hour chart

AUD/USD has pushed higher once again building on the 1.13% rise on Monday. The bulls need to target the wave high of 0.7064 to keep the trend going but today it seems they have run out of steam just at a critical point. 

Base metals are mixed today but the disconnect for the correlation has been rife since the COVID-19 pandemic began. Having said that, industrial commodities like copper and lumber are both higher on the week. 

In terms of the technicals, the price broke out of the triangle formation on Monday. As the now price moves lower there might be another retest of the structure. In the way of that theory, the 55 Exponential Moving Average is a support zone. It was used recently to great effect and also during the uptrend on the left of the chart it proved its worth.

The MACD indicator is looking bullish as the histogram and signal lines hold above the mid-point. Conversely,  the Relative Strength Index is pointing lower but it did not manage to reach the overbought area. 

Of course technically the price is still in an uptrend, the 4-hour chart is just showing a few signs if tiredness. A bearish break will be confirmed if the price gets below 0.6775.

Additional levels