AUD/USD Forecast: Bulls now eyeing the 0.8000 mark

AUD/USD Current Price: 0.7841

• Gold prices soared with a poor US employment report, hitting $ 1,843.30 a troy ounce.
• Upbeat Australian data provided additional support to the AUD/USD pair.
• AUD/USD is overbought in the near-term but has room to extend its advance.

The AUD/USD pair finished the week at 0.7841, not far from a multi-week peak at 0.7862. The rally was triggered by a disappointing US employment report, which put the greenback in sell-off mode. Higher gold prices provided additional support, as the bright metal jumped to $ 1,843.30 a troy ounce, a level that was last seen in February.

Australian data released on Friday was upbeat, as the AIG Performance of Services Index surged to 61 in April from 58.7 in the previous month. On Monday, the country will publish the final reading of March Retail Sales, foreseen unchanged from preliminary estimates at 1.4%, and April NAB’s Business Confidence, previously at 15.

AUD/USD short-term technical outlook

The AUD/USD pair is poised to extend its advance in the daily chart, as it has finally moved away from its moving averages, while the 20 SMA advances above the 100 SMA. Technical indicators have extended their recoveries within positive levels, maintaining their strong bullish momentum. In the nearer term and according to the 4-hour chart, the pair is bullish, although extremely overbought. Technical indicators have turned modestly lower at extreme readings, suggesting but not confirming a possible bearish correction. The 20 SMA is crossing above the 100 SMA, both over 100 pips below the current level. The risk will remain skewed to the upside as long as the pair holds above 0.7820.

 Support levels: ‘0.7820 0.7770 0.7720

Resistance levels: 0.7860 0.7900 0.7950

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