AUD/USD: bullish extension, aims for 0.7600

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7511

After breaking above the daily descendant trend line, the AUD/USD keeps advancing, now above the 0.7500 level for the first time since May 3rd. The positive tone of equities is what's actually backing the rally in the commodity-related currency, despite both, gold and oil, are seeing little action today. There were no relevant news coming from Australia, and there's no first-tier release pending this week, which means that sentiment will keep on driving the pair. In the short term, the positive tone prevails despite the lack of upward momentum, as the price advances further above a bullish 20 SMA and beyond a still horizontal 200 EMA in the 4 hours chart. Technical indicators in the same chart lack directional strength but hold within overbought levels, with no signs of easing at the time being. The pair topped at 0.7516 today, with an extension beyond it favoring additional gains up to the 0.7600 region, the base of the range that held the price between most of February and March.

Support levels: 0.7390 0.7550 0.7310

Resistance levels: 0.7515 0.7550 0.7600

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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