AUD/USD Price Analysis: Looks to regain 0.7400 amid bullish technical setup

AUD/USD’s path of least resistance appears north.
The spot confirmed a bull pennant on 1D on Tuesday.
Daily RSI has flattened just below the overbought territory.

Dhwani Mehta FXStreet

AUD/USD renews two-month highs at 0.7375, shrugging-off a big miss on the Australian Q3 Private Capital Expenditure data, as the latest leg down in the US dollar underpins.

The greenback was sold-off into renewed concerns about the post-pandemic US economic recovery, reinforced by the jump in the weekly Initial Jobless Claims, which negated the sharp rebound in the GDP for the third quarter. Also, rising covid cases in the US weighed on the dollar.

From a technical perspective, the path of least resistance appears to the upside, as the price has charted a bull pennant breakout on the daily chart last Tuesday.

The upside momentum is also backed by the 14-day Relative Strength Index (RSI), trending well above 50.00, with scope for further upside, as it remains below the overbought territory.

The bulls now await a sustained break above the 0.7400 psychological barrier to challenge the yearly highs of 0.7416.

Further north, a test of the 0.7450 barrier will come into the picture.

To the downside, the daily low of 0.7357 could halt the pullback, below which the 0.7300 round number will get tested. At that level, the pattern resistance now support coincides.

AUD/USD: Daily chart

AUD/USD: Additional levels

AUD/USD

Overview
Today last price	0.7368
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	0.7368

Trends
Daily SMA20	0.7243
Daily SMA50	0.7181
Daily SMA100	0.7179
Daily SMA200	0.685

Levels
Previous Daily High	0.7374
Previous Daily Low	0.7324
Previous Weekly High	0.734
Previous Weekly Low	0.7254
Previous Monthly High	0.7244
Previous Monthly Low	0.7002
Daily Fibonacci 38.2%	0.7355
Daily Fibonacci 61.8%	0.7343
Daily Pivot Point S1	0.7337
Daily Pivot Point S2	0.7306
Daily Pivot Point S3	0.7288
Daily Pivot Point R1	0.7387
Daily Pivot Point R2	0.7405
Daily Pivot Point R3	0.7436

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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