AUD/USD extends gains and rises above 0.7400

• A weaker US dollar boosts the pair to fresh daily highs. 
• From day’s low, it climbed more than 50 pips, making a reversal. 

The AUD/USD pair moved further to the upside during the American session on the back of a slide of the US dollar. The greenback continued to move lower as equity prices extended gains. The improvement in risk appetite help commodity currencies. The US Dollar Index erased all gains and dropped to 95.00 after finding resistance again at 95.40.  

Earlier today, AUD/USD bottomed at 0.7340, a 2-week low. Then it bounced sharply to the upside, making a strong reversal that could point to more gains ahead. As of writing it was trading at 0.7403, fresh daily high, testing the 20-day moving average. A daily close on top would reinforce the case for an extension to the upside while a retreat under 0.7360 would turn the intraday tone against the Aussie. 

Technical levels 

Momentum favors further gains in the very short-term. A consolation on top of 0.7400 could lead to a test of the next resistance located a t0.7420. If the Aussie extends the rally it would face July 16 highs at 0.7440/45. 

A rejected from 0.7400, could send the pair to the immediate support at 0.7385. Below the next support is seen at 0.7360 followed by the daily low at 0.7340.