AUD/USD analysis: commodities save the day

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7849

Bounce in commodities gave the Aussie a lift.
AUD/USD comfortable above 0.7820, further gains not at sight yet.

The AUD/USD pair fell to 0.7790 at the beginning of the day, but a u-turn in sentiment toward the greenback help it bounce back to the current 0.7850 region, where it pared its advance. The latest bounce has been supported by a nice comeback in commodities, with oil surging on positive market news and gold trimming its Wednesday's losses. Base metals benefited from a weaker dollar, while crude surged on the back of a surprise drawdown in US inventories. Australian macroeconomic calendar has nothing to offer this Friday. In the meantime, and despite the latest recovery, the risk remains skewed toward the downside in the short-term, given that in the 4 hours chart, the pair was unable to surpass a bearish 20 SMA, currently the immediate resistance around 0.7860, while technical indicators recovered from oversold levels, but pared their advances below their mid-lines. The immediate support, on the other hand, is the 0.7820 level, where the pair has the 50% retracement of the December/January rally.

Support levels: 0.7820 0.7775 0.7730

Resistance levels: 0.7850 0.7890 0.7930

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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