AUD/USD inching closer to Tuesday multi-week highs

Haresh Menghani FXStreet

After Friday's brief corrective pause, the AUD/USD pair resumed with its near-term recovery trend and remained closer to nearly 4-week high touched yesterday.

Currently trading around 0.7380 region, the pair caught fresh bids on Wednesday as investors seemed to lighten their bullish US Dollar bets ahead of the President-elect Donald Trump’s first news conference post election, scheduled later during NY session.

Moreover, upbeat sentiment surrounding commodity space, especially Copper, also collaborated to the bid tone and is supportive of the pair's up-move on Wednesday.

Additional upside, however, might be capped as investors now eagerly await for the further clarity over Trump's plans for the US economy, which might refuel Trump-led spike in the US treasury bond yields and eventually attract fresh selling pressure around the higher-yielding currencies - like the Aussie.

Technical levels to watch

Momentum above 0.7385 (yesterday's high) could get extended towards 0.7400 handle, en-route 0.7415 resistance and 0.7430 strong hurdle. On the downside, 0.7355-50 area now becomes immediate support below which the pair is likely break below 0.7330 level (yesterday's low) and head back towards testing sub-0.7300 level, 0.7285 support region (20-day SMA).

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.7363

67% Bullish
22% Bearish
11% Sideways

Bias Bullish

1 Month

Avg Forecast 0.7310

33% Bullish
50% Bearish
17% Sideways

Bias Bearish

1 Quarter

Avg Forecast 0.7275

47% Bullish
47% Bearish
6% Sideways

Bias Neutral

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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