AUD/USD struggles to extend gains above 0.7400

The bulls tightened their grip on the AUD, driving the recovery in the AUD/USD pair further above 0.74 handle as risk-on remains in full swing as Brexit concerns take a back seat.

AUD/USD takes-out 5-DMA at 0.7391

Currently, the AUD/USD pair trades nearly +1% higher at 0.7400, having posted fresh session highs at 0.7407 last minutes. The Aussie extends its bullish momentum into early Europe amid improved risk environment, with markets expecting a relief rally in the European stocks, as pointed out by higher DAX and FTSE indices futures.

Moreover, a solid rebound staged by the oil prices also fuelled the risk-on moves in the resource-linked AUD, driving AUD/USD further into the positive territory. Next of relevance for the major remains the US final GDP and consumer confidence data due later in the NA session. While sentiment on the global equities and Brexit-related news flow will continue to drive the Aussie price-action.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7425/30 (20-DMA/ daily pivot) above which gains could be extended to the next hurdle located at 0.7449 (5-DMA). On the flip side, the immediate support located at 0.7304 (200-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7283 (Jun 16 low).