AUD/USD Forecast: Bulls will try to push it through 0.7000
|AUD/USD Current Price: 0.6979
- Better than expected Chinese data provided support to the Aussie.
- AUD/USD technically bullish, overbought in the short-term.
The Australian dollar continued outperforming its major rivals, with the AUD/USD pair soaring to 0.6986, a level that was last seen in July this year. Wall Street’s rally and encouraging headlines related to the US-China trade relationship continued to provide support to the commodity-linked currency. On Friday, additional support came from China, as the country’s Industrial Profits rebounded sharply in November, up by 5.4% YoY, following a 9.9% decline in the previous month. The Australian macroeconomic calendar has nothing to offer this Monday, which means that sentiment will likely continue to lead, underpinning the Aussie. Later this week, China will release some relevant growth-related figures.
AUD/USD short-term technical outlook
From a technical point of view, the AUD/USD pair is bullish, further rallying above a long-term descendant trend line coming from 2018 high. In the daily chart, the pair has advanced above all of its moving averages, with the 20 DMA advancing between the larger ones, and technical indicators maintaining their bullish slopes near overbought levels. In the shorter term, and according to the 4-hour chart, the risk is also skewed to the upside, as the pair is developing above bullish moving averages, while technical indicators barely decelerated their advances, the RSI currently at 86. The 0.7000 threshold should offer resistance but could be broken in the current market conditions.
Support levels: 0.6940 0.6900 0.6865
Resistance levels: 0.7000 0.7035 0.7070
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