AUD/USD analysis: modestly bullish, more gains above 0.7700
|AUD/USD Current price: 0.7644
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The AUD/USD pair rallied to a fresh 3-week high of 0.7695 at the beginning of the day, fueled by Nikkei's recovery amid improved market sentiment, although it was again rejected from the major resistance area. The pair saw a limited downward correction on temporal dollar's strength, but resumed its advance after approaching the 0.7600 region, in spite of the sharp decline in commodities prices during the US afternoon. The short term picture favors a new leg higher, given that in the 1 hour chart, the Momentum indicator is bouncing from its 100 level, while the RSI indicator heads steadily higher, now around 58. In the same time frame, a strongly bullish 20 SMA has contained declines. In the 4 hours chart, technical readings also favor an upward extension, although the momentum is limited, as the price stands above a flat 20 SMA, while technical indicators head modestly higher within positive territory, but below previous highs. An extension beyond the mentioned daily high should see the pair quickly extending up to 0.7735, September 8th high, en route to 0.7770.
Support levels: 0.7645 0.7600 0.7570
Resistance levels: 0.7695 0.7735 0.7770
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