- AUD/USD takes the bids to refresh the highest levels in three weeks.
- Absence of overbought RSI suggests further advances past 200-SMA.
- 100-SMA, previous resistance line from April limit immediate downside.
AUD/USD prints the biggest daily gains in four as bulls attack the 200-SMA surrounding 0.7140 amid Friday’s Asian session.
The Aussie pair’s upside momentum could be linked to the recent break of the weekly hurdle, near 0.7105.
Despite the latest jump, the RSI (14) line has some room to the north, which in turn favors buyers.
However, the 200-SMA level surrounding 0.7140 appears immediate hurdle for the AUD/USD bulls to cross before heading towards the 50% Fibonacci retracement of April-May downside, near 0.7250.
In a case where the quote rises past 0.7250, the monthly peak of 0.7267 will gain the market’s attention.
On the contrary, pullback moves remain elusive until staying beyond the previous resistance confluence around 0.7020, including the 100-SMA and descending trend line from April 05.
Following that, the 0.7000 threshold and 0.6950 may entertain AUD/USD sellers before directing them to the monthly low of 0.6828.
AUD/USD: Four-hour chart
Trend: Further upside expected
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