AUD/USD Price Analysis: The pair has hit weekly resistance level at 0.7350
- AUD/USD is one of the best performing majors as the antipodeans outperform.
- The pair took out a took out the previous wave high and has now extended higher.
AUD/USD weekly chart
AUD/USD has performed well at the end of the week pushing 1.27% higher. Only NZD/USD has outperformed moving 1.5% in the black. The US dollar sell-off story has been going on for a while now and it seems that the other majors are all taking their turns in pushing higher against the greenback. Adding to this on a macro level, gold, oil and base metals are all up on Friday showing this is a very broad-based move and of course support the commodities currencies.
Looking at the chart below, the price is now very close to a resistance zone which has been used multiple times on the weekly chart. The blue horizontal line shows that the price has bounced off 0.7360 at least 4 times. However, this is not the strongest support and resistance area as the red line at 0.7750 shows more resistance.
The indicators are understandably bullish. The Relative Strength Index is in the overbought area above 70. The MACD histogram is green and the signal lines are also extended above the midpoint.
Overall there is no reason for the trend to change just yet. There was some hesitation at the orange trendline and now that hurdle has been taken out the trend could still continue. The next obvious target is the aforementioned red resistance level at 0.7750.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
