AUDUSD has broken above a key resistance zone around the 0.7050 minor psychological level, signaling that a potential uptrend could be underway. The pair appears to have staged a bullish breakout from its range, suggesting that buyers are gaining the upper hand.

However, price is currently pulling back to retest the broken resistance, which might now serve as support. The Fibonacci retracement tool shows where more buyers could be waiting to defend the upside bias and join in on the rally.

The 38.2% Fib is located at 0.7052, which coincides with the former resistance area and could attract fresh buying interest. The 50% level sits at 0.7023, while a deeper pullback could reach the 61.8% Fib at 0.6993, close to the 200 SMA dynamic inflection point.

The 100 SMA (blue line) is above the 200 SMA (red line) to confirm that the path of least resistance is to the upside or that the climb is more likely to resume than to reverse. The gap between the indicators is widening to reflect strengthening bullish pressure, and price is testing the 100 SMA as potential support.

Stochastic is hovering around the oversold region to suggest exhaustion among sellers, so turning higher would mean a return in buying momentum. The oscillator has plenty of room to climb before reaching the overbought area, which means that the bounce could extend back to the breakout point or higher.

RSI is also trading in the lower levels, so price could follow suit on its move up while bears take a break. If any of these Fibonacci levels are able to keep losses in check, AUDUSD could resume the climb to the swing high near 0.7147 or establish fresh highs.

A break below the 61.8% Fib and triangle support, however, could invalidate the bullish breakout scenario and set off a drop to the lows around 0.6898 or lower.

AUDUSD could take cues from the FOMC meeting minutes due midweek, followed by the US core PCE price index and advance GDP reports on Friday.