AUD/USD analysis: bullish, but caution advised

AUD/USD Current price: 0.7702

The AUD/USD pair recovered the ground lost in the previous two weeks, and settled at the upper end of this year's range at 0.7702, with the Aussie backed by a strong recovery in base metals. There's little in the Australian macroeconomic calendar this week, with RBA Minutes early Tuesday, being the most interesting event. The pair topped around 0.7720 this past week, being now the immediate resistance level to break to see additional gains. In the daily chart, technical indicators have entered positive territory, but show no actual directional strength whilst the price has settled flat above a horizontal 20 DMA, this last at 0.7615, all of which maintains the risk towards the upside, although the pair has been unable to sustain gains beyond the 0.7700 level since early 2015, meaning the upside potential is limited. In the 4 hours chart, technical indicators are horizontal within overbought territory, whilst the 20 SMA heads sharply higher below the current level, heading north around 0.7660. A decline below this last should see the pair pulling back towards the 0.7600 region, where  buying interest will likely contain the slide.

Support levels: 0.7660 0.7610 0.7570

Resistance levels: 0.7720 0.7760 0.7800

View Live Chart for the AUD/USD

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 securities. 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 Forex 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.