AUD/USD analysis: bullish momentum above 0.7965

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7927

The Australian dollar closed the week with gains against the greenback at 0.7927, backed by a recovery in base metals mid-week, later boosted by a rally in gold prices. The commodity flirted with $1,300.00 a troy ounce by the end of the week, on mounting demand for safe-haven assets on US political turbulence and the terror attack that took place in Barcelona last Thursday. The AUD/USD pair briefly touched a high of 0.7962 before reversing, but a weaker American dollar helped it recovering ground on Friday. The recovery seen these last few days has not been enough to put the pair in bullish territory, as in the daily chart, the price remains unable to surpass a marginally bearish 20 DMA, struggling around it by the end of the week, while technical indicators have recovered, but present modest upward slopes within neutral territory, lacking enough momentum to confirm a new leg higher ahead. Shorter term, and according to the 4 hours chart, the upward potential is limited as despite the price remains above a bullish 20 SMA, technical indicators have turned lower, still holding within positive territory The pair would need to surpass the mentioned weekly high to be able to extend its advance towards the 0.8000 region this Monday.

Support levels: 0.7905 0.7870 0.7830

Resistance levels: 0.7965 0.8000 0.8040

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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