AUD/USD analysis: heading towards critical 0.7700 region
AUD/USD Current price: 0.7619
The Aussie was among the best performers this past week, ending it up against the greenback at 0.7619, its highest settlement since early April. A broadly weaker greenback backed the pair on Friday, while the AUD got a boost from better-than-expected employment figures mid-week, showing a sharp increase in full-time jobs. The Reserve Bank of Australia will release the Minutes of its latest meeting on Tuesday, expected to reflect Governor's Lowe upbeat tone and therefore offering further support to the Australian currency. From a technical point of view, bulls are clearly in the driver's seat, given that in the daily chart, technical indicators maintain their upward slopes, despite entering overbought territory, whilst the price advanced further above a bullish 20 SMA. In the 4 hours chart, approaches to a bullish 20 SMA have attracted buying interest, with the indicator currently at 0.7580, while technical indicators turned lower within positive territory, rather reflecting the absence of follow-through than suggesting upward exhaustion. The pair topped this past week at 0.7635, the level to surpass to confirm a new leg higher towards the critical 0.7700 region.
Support levels: 0.7580 0.7530 0.7490
Resistance levels: 00.7640 0.7675 0.7700
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.
