AUD/USD analysis: Aussie becoming more attractive

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7578

AUD/USD aims to regain the upside, 0.7620 key resistance to break.
Commodities and equities to keep on leading the way for the pair.

The Aussie picked up mid-US afternoon as US equities reversed most of their daily losses while oil pared losses, factors that kept the AUD/USD pair for most of the day. There were no relevant macroeconomic releases in Asia to drive the pair, but the soft tone of equities kept the upside limited in the pair. Soft US data and easing demand for the greenback, prevented the pair from falling, having spent the day right below the 0.7565 Fibonacci level. News that the OPEC may increase its oil production to compensate Iran and Venezuela possible output drop, put a halt on the commodity's s decline, backing the ongoing recovery in the AUD. The macroeconomic calendar has nothing to offer this Friday, meaning that sentiment will keep on giving clues to AUD/USD traders. Technically, the pair is at the higher end of these last two-day range, a handful of pips above the 38.2% retracement of the latest weekly decline, and biased modestly higher, according to the 4 hours chart, as the price is moving above a bullish 20 SMA, while technical indicators are trying to pick up, the Momentum still within neutral levels, but the RSI actually at 61. The pair has now scope to extend its advance up to the 0.7620 region, the 50% retracement of the mentioned decline, while beyond this last, a steeper recovery should be expected for the upcoming sessions.

Support levels: 0.7565 0.7530 0.7505

Resistance levels: 0.7590 0.7620 0.7660

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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