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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.