AUD/USD outlook: Lifted by fresh risk appetite, retests key resistance zone
|AUD/USD
AUDUSD advanced 0.5% in Asian / European trading on Monday, to completely reverse Friday’s drop and generate initial signal of bullish continuation.
Fresh strength cracked pivotal barriers at 0.6600 zone (converged 200/100DMA’s / base of rising daily cloud, where Friday’s action was strongly rejected.
Gains so far minimized signals of bull trap and recovery stall but need to register clear break of these barriers to open way for further recovery.
Otherwise, repeated upside failure may keep the price in extended consolidation or turn near-term structure into bearish mode on break below 10DMA (0.6538).
Daily studies show MA’s in mixed setup, north-heading momentum still in the negative territory and overbought stochastic, all contributing to unclear near term direction.
On the other hand, fundamentals are improving as revived risk appetite lifted Asian stocks and provided fresh support to risk sensitive Ausie dollar, which may play a key role and help the pair to clear pivotal barriers.
Sustained break higher to expose targets at 0.6626 (Fibo 61.8% of 0.6798/0.6348 descend) and 0.6679 (daily cloud top) in extension.
Broken Fibo 50%, reinforced by daily Kijun-sen (0.6573) offers immediate support, guarding pivotal 10DMA (0.6538).
Res: 0.6609; 0.6626; 0.6679; 0.6692.
Sup: 0.6573; 0.6564; 0.6538; 0.6520.
Interested in AUD/USD technicals? Check out the key levels
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