AUD/USD Price Analysis: Important resistance at 0.6555/65 area

Australian dollar recovery from 0.6378 has reached key resistance at 0.6555/65 area.
Previous trendline support and the 100-day SMA might cap the AUD/USD uptrend.
Above 0.6565, next targets might be 0.6680 and 0.6765.

Guillermo Alcala FXStreet

The aussie has extended gains on Friday favoured by a brighter market sentiment triggered by emerging plans to ease COVID-19 restrictions and broad-based US dollar weakness.

AUD/USD rebound from 0.6378 lows on Thursday has jumped beyond 0.6500 to reach session highs at 0.6545, where the pair faces an important resistance hurdle. The 100-day SMA, which capped the pair’s recovery on April 30 and the former trendline support, both converging at 0.6555/65 might put pressure on AUD bulls.

Above here, the pair might gain bullish momentum, aiming towards march 9 high at 0.6680 and early February highs at 0.6765.

On the downside, the pair has found support at 0.6380 (May 4 and 7 lows). Below here bears might increase negative pressure driving the pair towards April 21 low at 0.6250 and April 9 low at 0.6190.

AUD/USD daily chart

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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