AUD/USD analysis: bullish, but close to critical selling zone
AUD/USD Current price: 0.7666
The AUD/USD pair advanced up to 0.7689, a fresh 2-week high, supported by the good performance of worldwide stocks, and the soft tone of the American currency. In Australia, the release of the RBA's latest Minutes showed that another interest rate cut remains possible as governor Philip Lowe said interest rates could fall if jobs market worsens, although his approach was seen as cautious to any further interest rate cut. He also referred to inflation, suggesting that, despite being below their comfort levels, it's still not a major concern and that "what is important is that we deliver an average rate of inflation consistent with the medium-term target." The pair retreated modestly after approaching the 0.7700 level, a major static resistance area, as it has been unable to hold on to gains above the level during these last few months. Technical readings in the 4 hours chart suggest that the pair may see a new leg higher during the upcoming sessions, as the 20 SMA has accelerated its advance, and maintains a strong upward slope below the current level, while technical indicators have turned fat within positive territory after correcting overbought conditions. The pair can go up to 0.7730, September high, where the first batch of sellers will probably surge.
Support levels: 0.7650 0.7600 0.7570
Resistance levels: 0.7690 0.7730 0.7770
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.
