AUD/USD Forecast: Another leg higher likely in the near term
AUD/USD Current Price: 0.7179
- Reserve Bank of Australia Governor Philip Lowe will offer a speech on Thursday.
- The market’s mood soured amid uncertainty over the Omicron coronavirus variant.
- AUD/USD is bullish in the near term and may extend its rally towards 0.7265.
The AUD/USD extended its recovery on Wednesday, reaching an intraday high of 0.7183 and trading a handful of pips below the level by the end of the American session. The pair rallied despite the poor performance of equities and weaker gold prices, usually negative factors for AUD/USD. More likely, it seems that dollar bulls decided to take some profits out of the table.
The macroeconomic calendar was scarce in both countries, without any relevant figures released. However, Reserve Bank of Australia Governor Philip Lowe is scheduled to offer a speech on Thursday.
AUD/USD short-term technical outlook
The AUD/USD pair advanced for a third consecutive day, breaking above a daily descendant trend line coming from this year high, hinting at further gains ahead. The daily chart shows that technical indicators accelerated their advances, but also that they remain within negative levels. Finally, the 20 SMA has partially lost its bearish momentum, currently acting as dynamic resistance at around 0.7190.
The 4-hour chart shows that the pair is actually crossing above its 100 SMA, while the 20 SMA aims higher well below the current level. Meanwhile, technical indicators have lost bullish momentum but hold within overbought readings, falling short of suggesting an upcoming decline.
Support levels: 0.7160 0.7115 0.7070
Resistance levels: 0.7190 0.7220 0.7265
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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.
