- A sustained move above 0.6780 barrier was seen as a key trigger for bulls.
- Growing optimism over a possible US-China trade deal remains supportive.
The AUD/USD pair added to the overnight goodish intraday move up and continued gaining positive traction for the second consecutive session on Friday. The momentum was strong enough to assist the pair to move beyond the 0.6780 confluence resistance and climb to over two-week tops.
A sustained move beyond the mentioned barrier, comprising of 200-period SMA on the 4-hourly chart and 50% Fibonacci level of the 0.6895-0.6671 recent leg down, might now be seen as a key trigger for bullish traders and sets the stage for a further near-term appreciating move for the pair.
Meanwhile, technical indicators on the daily chart have just started gaining positive traction and maintained their bullish bias on the 4-hourly chart, reinforcing the constructive outlook. However, oscillators on the 1-hourly chart are already flashing slightly overbought conditions and warrant some caution.
Hence, any subsequent positive move seems more likely to pause near the 0.6800-0.6810 region, nearing 61.8% Fibo. level, which if cleared should pave the way for an extension of the recent recovery move from over a decade low set earlier this October amid growing optimism over a possible US-China trade deal.
On the flip side, the 0.6780 confluence resistance breakpoint now seems to protect the immediate downside, which if broken might accelerate the corrective slide further towards mid-0.6700 – 38.2% Fibo. level – en-route 23.6% Fibo. level support near the 0.6725-20 region.
AUD/USD 4-hourly chart
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