- AUD/USD reverses an early dip to 100-DMA amid renewed trade optimism.
- The set-up favours bullish traders and supports prospects for additional gains.
The AUD/USD pair managed to find decent support near 100-day SMA and has now recovered its early lost ground, led by softer Aussie GDP growth figures. The said support nears the 38.2% Fibonacci level of the 0.6930-0.6754 recent downfall and should now act as a key pivotal point for short-term traders.
Currently hovering around mid-0.6800s, the pair has now moved back within the striking distance of multi-week tops set in the previous session amid renewed trade optimism. This coupled with some USD weakness, weighed down by dismal ADP report, further contributed to the pair's intraday bounce of around 30 pips.
Meanwhile, technical indicators on 4-hourly/daily charts maintained their bullish bias and have again started gaining positive traction on the 1-hourly chart. Against the backdrop of the recent rally, the technical set-up remains in favour of bulls and support prospects for a further near-term appreciating move.
However, traders are likely to wait for a sustained move beyond the overnight swing high resistance near the 0.6860-65 region, coinciding with 61.8% Fibo. level before placing any fresh bullish bets. Above the mentioned barrier, the pair is likely to accelerate the positive move further towards reclaiming the 0.6900 round-figure mark.
On the flip side, the mentioned confluence support, around the 0.6815-10 region might continue to protect the immediate downside, which if broken might negate the constructive set-up. The pair then might turn vulnerable to slide below the 0.6800 handle (23.6% Fibo.) and head towards last week's swing low, around the 0.6760 region.
AUD/USD daily chart
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