AUD/USD Forecast: Bulls likely to test the yearly high

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7352

The Australian trade surplus contracted in October to 4840M.
Wall Street rallying to record highs underpinned the aussie.
AUD/USD bullish breakout supports another leg north in the near-term.

The AUD/USD pair hit a fresh 2-month high of 0.7367, holding on to most of its daily gains as the US session comes to an end. The pair rallied despite discouraging Australian data, as the trade surplus in October resulted at 4840M, down from 5630M in the previous month. Imports rose 8% in the month, while exports were up by 6%. Rallying equities provided support to the pair during US trading hours. This Wednesday, Australia will publish Construction Work Done, seen declining by 2% in the three months to September, after falling by 0.7% in the second quarter of the year.

AUD/USD short-term technical outlook

The AUD/USD pair is trading in the 0.7350 price zone, poised to extend its advance. The 4-hour chart shows that a mildly bullish 20 SMA provided intraday support, currently at 0.7310. The 100 SMA has accelerated north below the shorter one. Technical indicators, on the other hand, lack directional strength but remain within positive levels. The next relevant resistance and the bullish target is 0.7413, the year high achieved last September.

Support levels: 0.7335 0.7290 0.7250

Resistance levels: 0.7370 0.7415 0.7540

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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