AUD/USD Price Analysis: Hits three-week high, around 0.7200 mark ahead of US CPI

• AUD/USD turned positive for the fourth straight day and shot to a near three-week high.
• A convincing breakthrough the 0.7175-0.7180 confluence hurdle favours bullish traders.
• Bulls might now aim to reclaim the 0.7300 mark and test the 0.7315 area, or 2022 high.

The AUD/USD pair attracted some dip-buying near the 0.7160 region on Thursday and turned positive for the fourth successive day. The momentum pushed the pair to a near three-week high during the mid-European session, with bulls now looking to build on the momentum beyond the 0.7200 mark.

From a technical perspective, the latest leg up now seems to have confirmed a bullish breakout through a descending trend-line extending from 2022 high, around the 0.7315 area touched on January 13. The mentioned hurdle also coincided with the 61.8% Fibonacci level of the 0.7315-0.6967 downfall.

Given that technical indicators on the daily chart have just started gaining positive traction, the AUD/USD pair seems all set to prolong its recent recovery from a two-year low. That said, bulls are likely to wait for the US CPI report before positioning for any further appreciating move.

The next relevant resistance pegged near the 0.7225 region ahead of the 100-day SMA, around mid-0.7200s. Some follow-through buying has the potential to lift the AUD/USD pair beyond the 0.7280 intermediate resistance, towards the 0.7300 mark and the 0.7315 region, or the YTD high.

On the flip side, the 0.7180-0.7175 confluence resistance breakpoint now seems to protect the immediate downside. Any subsequent slide might attract some buying and remain limited near the 50% Fibo. level, around the 0.7140 region, which if broken decisively will negate the positive outlook.

The AUD/USD pair would then turn vulnerable and accelerate the slide towards the 0.7100 round-figure mark. The downward trajectory could further get extended and drag spot prices back towards retesting the post-NFP swing low, around the 0.7050 region, support marked by the 23.6% Fibo. level.

AUD/USD daily chart

Technical levels to watch