Technical Analysis – AUDUSD in bullish phase reaching highest level in over 2-months
|AUDUSD extended its bullish run yesterday but is currently taking a pause after hitting 0.7844, its highest level since October 20.
AUDUSD has room to extend towards 0.7900 since prices crossed above the 200-day moving average. The market is currently testing the key 0.7800 level. A daily close above it would help keep momentum to the upside.
However, the stochastic and RSI indicators are overbought, which suggests that prices could risk pulling back.
A drop back below the 200-day MA (around 0.7690) would indicate that the bullish phase has ended and AUDUSD risks dropping down to 0.7500. This is expected to provide strong support though. Any move lower would see a resumption of the downtrend from the 0.8124 peak.
In the meantime, the short-term bullish phase is still in progress. A sustained move above 0.7800 could see the rally continue, with dips supported at 0.7690.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.