• Aussie strengthens ahead of the RBA meeting.
• More gains seem likely if AUD/NZD breaks above 1.0730.

The AUD/NZD is rising on Monday, testing the 1.0730 resistance area. It has been trading at the highest level since July. The 1.0725/30 is the upper limit of the current range. The cross is moving sideways, consolidating after strong gains with an upside bias.

A break and a consolidation above 1.0730, would clear the way to more gains with the next target at 1.0800, which should limit the upside.

The bullish bias is likely to remain intact while above 1.0650. A daily close clear below 1.0650 should point to an extension on the downside, with the next strong barrier at 1.0570.

Volatility is likely to remain elevated considering the incoming Reserve Bank of Australia meeting and the fact that AUD/NZD is trading at key technical levels. Also, the RSI is about to reach 70, suggesting some exhaustion to the upside.

AUD/NZD daily chart