AUD/USD bounces-off 50-DMA, revisits daily highs

Dhwani Mehta FXStreet

AUD/USD is seen confined in a narrow range so far this session, now reversing a downward spike to daily lows struck just ahead of 50-DMA support of 0.7352.

AUD/USD struggles with 0.7375 resistance

Currently, the AUD/USD pair peeks into the green zone at 0.7370, revisiting daily highs reached previously at 0.7373 levels. A renewed risk-on wave appears to have gripped markets, fuelling a fresh bout of buying interest behind the higher-yielding Aussie.

Moreover, a tepid-bounce in oil and gold prices also lend support to the AUD/USD recovery. However, further upside remains limited as the greenback remains bid across the board ahead of Trump’s first news conference post his US presidential elections win. While the economic calendar today remains absolutely data-dry, leaving the spot at the mercy of the USD dynamics.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7393 (daily R1) above which gains could be extended to the next hurdle located 0.7450 (psychological levels) and 0.7487 (100-DMA). On the flip side, the immediate support located 0.7340 (5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7300 (round figure) and below that at 0.7250 (20-DMA).

1. R3 0.7450
2. R2 0.7419
3. R1 0.7395
PP 0.7363
1. S1 0.7339
2. S2 0.7307
3. S3 0.7283

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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