AUD/USD Price Analysis: Aussie hits 7-week high

• AUD/USD reaches multi-week highs amid risk-on action in stocks. 
• Further gains may be seen as the hourly chart shows a channel breakout.

AUD/USD broke higher from an hourly chart consolidation pattern early Monday and clocked a high of 0.7298 a few minutes before press time. That level was last seen on Sept. 21. 

The hourly chart breakout indicates a resumption of the rally from the Nov. 2 low of 0.6991 and has opened the doors to the Sept. 16 high of 0.7345. 

Backing the bullish case is the risk-on environment. Stocks are better bid at press time as investors foresee the split US Congress under Democrat candidate Biden's leadership paving the way for additional Federal Reserve stimulus and easing of US-China tensions. 

The above-50 daily chart relative strength index and the positive MACD histogram also favor continued gains in the Aussie dollar. 

Acceptance below the hourly chart support of 0.7239 would abort the immediate bullish outlook. 

Hourly chart

Trend: Bullish

Technical levels