AUD/USD testing resistance at 0.6740 amid the positive risk sentiment

The Aussie has resumed its upside path to test 0.6740 resistance.
Hawkish RBA minutes are supporting the AUD.
The Dollar remains depressed with Fed officials sending mixed signals.

Guillermo Alcala FXStreet

The Aussie Dollar is trading in a moderately bid tone this week, with price action crawling towards the 1.6740 resistance area, with the pair favoured by positive market sentiment and a weaker US Dollar.

A hawkish RBA has given a fresh boost to the Aussie

Earlier on Tuesday, the monetary policy minutes of the RBA´s last meeting have shown a hawkish tone that has increased bullish pressure on the pair. The RBA observed “encouraging signs” on inflation trends yet it maintained the options open for further tightening if needed.

This contrasts with the dovish tone of Fed Chairman Jerome Powell after last week´s Fed meeting, which is still weighing on the US Dollar. The mixed message given by Fed speakers has done little to support a weak USD, with US bond yields nailed at multi-month lows.

Technical indicators remain positive with a bullish cross between the 4-H 50 and 100 SMAs giving fresh hopes for buyers. Above 0.6740, the next targets would be the late July highs at 0.6820 and 0.6850.

Support levels are 0.6665 and 0.6615.

Technical levels to watch

AUD/USD

Overview
Today last price	0.6738
Today Daily Change	0.0034
Today Daily Change %	0.51
Today daily open	0.6704

Trends
Daily SMA20	0.661
Daily SMA50	0.6481
Daily SMA100	0.6461
Daily SMA200	0.6577

Levels
Previous Daily High	0.6735
Previous Daily Low	0.669
Previous Weekly High	0.6729
Previous Weekly Low	0.654
Previous Monthly High	0.6677
Previous Monthly Low	0.6318
Daily Fibonacci 38.2%	0.6718
Daily Fibonacci 61.8%	0.6708
Daily Pivot Point S1	0.6684
Daily Pivot Point S2	0.6665
Daily Pivot Point S3	0.6639
Daily Pivot Point R1	0.6729
Daily Pivot Point R2	0.6755
Daily Pivot Point R3	0.6775

(This story was corrected on December 19 at 14:56 GMT to say in the headline that AUD/USD is testing resistance at 0.6740. A previous version of the story said that was testing resistance at 1.6740).

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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