AUD/USD Forecast: Corrective advance set to continue

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6065

Wall Street edged sharply higher, keeping commodity-linked currencies up.
Gold surged to a fresh weekly high of $1,643, retreated ahead of the close.
AUD/USD at its highest in over a week near 0.6100.

The AUD/USD pair is ending the day with gains around 0.6080, a fresh weekly high, underpinned by rallying equities and a weaker dollar in the last trading session of the day. The pair recovered from an early low of 0.5869, a result of the dismal mood that led markets throughout the first half of the day. Additional support came from gold, as the bright metal resumed its advance to trade as high as $1,643 a troy ounce. The commodity, however, eased ahead of the close amid Wall Street’s persistent strength. Australia won’t release relevant data this Friday.

AUD/USD short-term technical outlook

The AUD/USD pair is trading at daily highs, and the 4-hour chart shows that the 20 SMA has provided intraday support, maintaining its bullish strength below the current level. Technical indicators in the mentioned chart have bounced from around their midlines, the Momentum still heading higher and the RSI directionless at around 62. The 100 SMA keeps heading south above the current level, currently at 0.6190. The short-term picture favours a bullish continuation, although, in the longer run, the advance seems just corrective.

Support levels: 0.6030 0.5990 0.5955

Resistance levels: 0.6105 0.6150 0.6190

View Live Chart for the AUD/USD

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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