Economy Forex News

AUD/USD: 0.7315-20 zone continues to limit upside

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  • Modest USD weakness helped AUD/USD gain some positive traction on Thursday.
  • Mixed technical indicators on hourly/daily charts warrant caution for aggressive traders.
  • A sustained move beyond the 0.7315-20 region is needed to confirm a bullish breakout.

AUD/USD the pair maintained its offered tone heading into the US session and soared to 1.5-week highs around the 0.7310 region in the last hour.

AUD/USD

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The risk appetite momentum in the markets undermined the US dollar’s safe haven demand, which in turn was seen as a key factor benefiting the perceived riskier aussie.

Although the prospects of early policy tightening by the Fed and better-than-expected US jobless claims helped limit USD losses. The AUD/USD pair gains remained limited.

Technically speaking, bulls should hold off on further gains until a sustained move beyond the 0.7315-20 bid zone has occurred.

AUD/USD the pair could break above the intermediate hurdle of 0.7365 and regain the 0.7400 level. The momentum could extend towards 0.7450 en route to swing highs around 0.7475-80 in September.

Meanwhile, technical indicators on the hourly charts have been gaining positive ground. Then are still far from being in the overbought zone. Although oscillators on the daily chart have recovered from negative territory, they have yet to confirm a bullish bias. Bullish traders should proceed with caution.

In contrast, the horizontal support zone of 0.7225-20 now appears to be acting as a strong immediate support level for the AUD/USD pair.

With a convincing break below, the bias will shift to bearish traders, positioning the market for a fall towards the oscillating lows around the 0.7100 level touched on August 20.

Technical levels

OVERVIEW
Today’s Last Price 0.7293
Daily Rate 0.0021
Daily % Change 0.29
Today’s Daily Open 0.7272

TRENDS
20 Daily SMA 0.7281
50 Daily SMA 0.7309
100 Daily SMA 0.744
200 Daily SMA 0.7583

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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