AUD/USD analysis: pointing to advance beyond 0.8000

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7922

The AUD/USD surged to 0.7942, its highest since in over two years, backed not only by dollar's sell-off, but also by a more optimistic RBA, according to the Minutes released early Tuesday. The Central Bank remains reluctant to follow its overseas counterparts, keeping rates on-hold and suggesting they will remain so for an extended period, but offered a positive tone on the economic outlook. A surprise factor from the minutes was that policymakers discussed what would a proper neutral interest level rate be, establishing 3.5% as the level where rates won't interfere with economic developments. In the 4 hours chart, technical indicators have begun retreating from extreme overbought territory, but the price's pullback has been shallow, whilst the 20 SMA continues heading sharply higher below the current level, all of which maintains the risk towards the upside. Beyond today's high, the rally could extend up to the 0.8060/70 region during the upcoming sessions, where the pair presents multiple monthly highs and lows from the last decade.

Support levels: 0.7905 0.7880 0.7835

Resistance levels: 0.7945 0.7990 0.7830

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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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