AUD/USD outlook: Aussie rallies on improved sentiment as top of thick daily cloud provides strong support
|AUD/USD
The Australian dollar bounces strongly in Asian / early European trading on Tuesday (up 1.3%), lifted by improved risk sentiment on speculations that China could ease Covid restrictions after recent protests.
Fresh bullish acceleration comes after repeated rejection at the top of thick daily cloud (0.6649) which continues to underpin near-term action.
Daily studies maintain strong bullish momentum and improved on the latest rally which pushed the price above converged 10/100DMA’s, bringing moving averages in full bullish setup.
Bulls look for retest of key resistance zone (0.6767/97) provided by Fibo 61.8% of 0.7136/0.6170 / recent tops of Nov 15/24, with firm break here to generate signal bullish continuation.
Extension of larger uptrend from 0.6170 (Oct 13) would focus targets at 0.6906/16 (Fibo 76.4% / Sep 13 high).
Daily cloud top marks strong support, guarding lower pivots at 0.6584/52 (Nov 21 trough / Fibo 38.2% of 0.6170/0.6797) loss of which would weaken near-term structure.
Res: 0.6780; 0.6797; 0.6894; 0.6906.
Sup: 0.6698; 0.6649; 0.6614; 0.6584.
Interested in AUD/USD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.