AUD/USD Analysis: bullish potential increasing, more beyond 0.7200

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7171

Chinese data gave healthy signs, Aussie rose.
AUD/USD headed toward critical 0.7250 resistance.

The AUD/USD pair advanced up to 0.7191, its highest since last February, ending the week with gains a handful of pips below this last. The Aussie got a boost from Chinese data released early Friday, as the Chinese trade surplus more than tripled the market's expectations by reaching $32.564B, with exports up 14.2% and imports declining by 7.6%. Also, bank lending in the world's second-largest economy rose in March with New Loans up by 1,690.0B. The positive tone of equities throughout the three sessions of the day kept the AUD/USD pair on the winning side, furthermore as US data failed to impress. There are no data scheduled for release this Monday in Australia and China.

Technically speaking and according to the daily chart, the pair has a neutral-to-bullish stance, as the 200 DMA capped the upside at around 0.7200, although the pair settled above the 20 and 100 DMA, all of them anyway, lacking directional strength. Technical indicators in the mentioned chart remain within positive levels but lacking enough momentum to confirm further gains ahead. In the 4 hours chart, the risk bends to the upside, given that the pair settled above moving averages, and with the 20 SMA accelerating north above the larger ones, currently at 0.7145 providing an immediate dynamic support. Technical indicators in the mentioned chart hold on to positive ground, although with divergent directional strength, falling short of confirming additional gains. The bullish case will be stronger if the pair breaks above the mentioned 0.7200 level.

Support levels: 0.7170 07135 0.7090

Resistance levels: 0.7205 0.7250 0.7280

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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