AUD/USD analysis: close to a bullish breakout, but not there yet

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7457

The AUD/USD pair closed the week with gains at 0.7457 after declining for four weeks in a row, helped by broad dollar's weakness, although with gains limited by the sour negative sentiment that led the way for most of the past days. Plummeting equities weighed on the Aussie, despite local data was generally encouraging, with strong employment figures that anyway were not enough to offset the sour sentiment. Most of the pair's gains were achieved on Friday, as stocks regained some ground, prompting an advance in commodity-related currencies. From a technical point of view, more gains are not yet clear, given that the pair ended the week just a handful of pips above a daily descendant trend line coming from this year high at 0.7749, not enough to confirm a bullish breakout of the key level. In the daily chart, the price has settled also above its 20 DMA, while technical indicators turned north, now entering positive territory. In the 4 hours chart, the price stands above a bullish 20 SMA, but technical indicators have lost upward strength within positive territory, while a bearish 200 EMA offers a strong dynamic resistance around 0.7470, with gains above this last opening doors for further short term recoveries.

Support levels: 0.7420 0.7375 0.7330

Resistance levels: 0.7470 0.7510 0.7550

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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