AUD/USD Forecast: Bullish breakout hints further gains ahead

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7727

Australian Westpac Consumer Confidence printed at 6.2% in April up from 2.6% previously.
Australia to publish March employment data, with 35K new jobs expected to have been added.
AUD/USD turned bullish in the near-term and could keep rallying in the upcoming sessions.

Commodity-linked currencies outperformed their European rivals against the greenback, with AUD/USD rallying to 0.7737, a fresh April high. Crude oil prices were the initial trigger, as WTI jumped to above $ 63.00 a barrel following an encouraging EIA report, which showed a third straight week of crude draw. The headline spurred risk appetite, sending US indexes to unexplored territory.

Australian data was supportive of the local currency as April Westpac Consumer Confidence printed at 6.2%, up from 2.6% in the previous month. This Thursday, the country will publish April Consumer Inflation Expectations, previously at 4.1%, and March employment figures. The country is expected to have added 35K new jobs in the month, while the unemployment rate is seen down to 5.7%.

AUD/USD short-term technical outlook

The AUD/USD pair holds on to gains trading near the mentioned high, facing the next resistance at 0.7770. Once above the level, the path opens for a steeper advance. The 4-hour chart shows that the pair has sharply advanced beyond its 200 SMA for the first time in almost a month, while the 20 SMA slowly gains bullish traction well below the longer one. Technical indicators eased just modestly from intraday highs, holding near overbought readings, a sign of prevalent buying interest.

Support levels: 0.7710 0.7690 0.7640

Resistance levels: 0.7770 0.7820 0.7860

View Live Chart for the AUD/USD

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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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