AUD/USD analysis: bullish, but critical 0.7890 holds for now

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7870

Aussie backed by US exemption on tariffs for steel and aluminum.
AUD/USD could extend its advance up to the 0.8000 figure, but gains beyond the level unlikely.

The Australian dollar extended its gains against the greenback to a fresh 2-week high of 0.7879, as broad dollar's weakness coupled with positive news for the country, as Australia will be exempted from US' Trump tariffs on steel and aluminum. The Aussie holds on to gains despite the softer tone in US equities, although the pair was unable to surpass the critical 0.7890 level. RBA Assistant Governor Bullock is set to speak during the upcoming Asian session, although his speech is not focused in monetary policy, while the country will release some housing figures, alongside with the NAB's Business Confidence index for February, expected at 9 from previous 12. Technically, the 4 hours chart shows that the pair holds near its daily high, above a bearish 20 SMA, which now nears a Fibonacci support around 0.7820, while technical indicators turned flat after entering positive territory. Chances are of an upward extension on a break above the mentioned 0.7890 level, the 38.2% retracement of the December/January rally.

Support levels: 0.7820 0.7775 0.7740

Resistance levels: 0.7890 0.7920 0.7955

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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