AUD/USD continues to send bullish signals in the daily timeframe as the price further enhanced its two-month-old uptrend after stepping on the 0.6400 level and printing another higher high at 0.6615 on Wednesday.

In the short-term, some weakness cannot be ruled out as the price is hovering around the upper Bollinger band and the RSI seems to be losing steam towards its 50 neutral mark. That said, any retracement would not be a big worry unless the market closes clearly below the 0.6400 mark and keeps deteriorating within the lower Bollinger area.

Should the above scenario be realised, the next key support could be detected in the crossroads of the 50-day simple moving average (SMA) and the 50% Fibonacci level of the down leg from 0.7031 to 0.5506, at 0.6268. Falling below 0.6200, the 38.2% Fibonacci of 0.6088 may try to cancel the test of the 0.5980 low taken from April 3.

On the upside, the bulls are targeting the 200-day SMA currently around 0.6655, a break of which could increase positive momentum towards 0.6755, shifting the medium-term trajectory from bearish to neutral as well. Moving higher, the pair would aim for the 0.7031 level but the area between 0.6830 and 0.6930 needs to give way first.

In brief, the short-term risk is expected to hold positive as long as AUD/USD keeps its uptrend valid above 0.6400.


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This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Source: XM

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