AUD/USD: higher on risk flip, but limited directional strength

AUD/USD Current price: 0.7436

The AUD/USD pair spiked to a fresh weekly high of 0.7469 during European trading hours, underpinned by renewed dollar selling, but failed to sustain gains, although the retracement was limited amid broad dollar's weakness. There were no news in Asia, with local markets recovering following the lead of Wall Street, and backing the Aussie's advance. The positive tone persists, despite the pair trades below the daily descendant trend line coming from this year high of 0.7749, although the upside potential remains limited, given that in the 4 hours chart, the price holds above a mildly bullish 20 SMA, whilst technical indicators consolidate above their mid-lines. In the same chart, the early advance stalled a couple of pips below the 200 EMA, a major dynamic resistance that needs to be broken to confirm a new leg higher. The pair can ease in the  case of a u-turn in worldwide equities, but it will take a break below 0.7390 to see it gaining bearish momentum.

Support levels: 0.7390 0.7550 0.7310

Resistance levels: 0.7470 0.7510 0.7550

View Live Chart for the AUD/USD

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