AUD/USD analysis: scope to extend rally towards 0.7530

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7455

The AUD/USD pair jumped to its highest since December 14th, reaching 0.7471 before settling with solid around 0.7450. The Aussie rallied ever since the day started, backed by a continued advance in base metals, and a comeback in oil prices amid dollar's broad weakness. The Australian macroeconomic calendar had little to offer this Wednesday, and will remain empty during the upcoming Asian session, which means that the pair will continue to take clues out of commodities. The current level stands for the 38.2% retracement of the 2016 rally, so it won't surprise to see some consolidation/retracement before the next directional move. In the 4 hours chart, technical indicators turned sharply higher, now entering overbought territory, while the price has jumped around 100 pips from a bullish 20 SMA. Also, the price has broken above the 61.8% retracement of the latest daily decline around 0.7390, and retracements towards this last will likely attract buying interest. An advance beyond the mentioned daily high will likely result in a test of the 0.7530 region, where the pair will complete a 100% retracement of its December losses.

Support: levels: 0.7425 0.7390 0.7350

Resistance levels: 0.7480 0.7530 0.7560

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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