AUD/USD analysis: bullish, but caution advised
|AUD/USD Current price: 0.7702
The AUD/USD pair recovered the ground lost in the previous two weeks, and settled at the upper end of this year's range at 0.7702, with the Aussie backed by a strong recovery in base metals. There's little in the Australian macroeconomic calendar this week, with RBA Minutes early Tuesday, being the most interesting event. The pair topped around 0.7720 this past week, being now the immediate resistance level to break to see additional gains. In the daily chart, technical indicators have entered positive territory, but show no actual directional strength whilst the price has settled flat above a horizontal 20 DMA, this last at 0.7615, all of which maintains the risk towards the upside, although the pair has been unable to sustain gains beyond the 0.7700 level since early 2015, meaning the upside potential is limited. In the 4 hours chart, technical indicators are horizontal within overbought territory, whilst the 20 SMA heads sharply higher below the current level, heading north around 0.7660. A decline below this last should see the pair pulling back towards the 0.7600 region, where buying interest will likely contain the slide.
Support levels: 0.7660 0.7610 0.7570
Resistance levels: 0.7720 0.7760 0.7800
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