AUD/USD outlook: AUD/USD rallies for the fifth straight day, eyes key barriers

Slobodan Drvenica Windsor Brokers

AUD/USD

AUDUSD extends steep upleg into fifth straight day and hit two-week high on Tuesday, as weakening US dollar and higher commodity prices continue to underpin Aussie dollar.

Improving technical pictures on daily and weekly charts contribute to bullish outlook (daily MA’s mainly turned to bullish setup and positive momentum is strengthening, while last week’s massive bullish candle formed bullish engulfing pattern and contribute to reversal signal).

Bulls near pivotal barriers at 0.6400 zone (former tops) and Fibo level at 0.6428 (50% retracement of 0.6942/0.5914 bear-leg) break of which to validate signa and open way for further advance.

Caution on overbought daily studies which may slow the rally for consolidation.
Broken Fibo 38.2% and 10DMA (0.6307/0.6290 respectively should contain dips and keep bulls intact.

Res: 0.6400; 0.6428; 0.6481; 0.6500.
Sup: 0.6350; 0.6307; 0.6290; 0.6248.

Interested in AUD/USD technicals? Check out the key levels

1. R3 0.6423
2. R2 0.6383
3. R1 0.6355
PP 0.6315
1. S1 0.6288
2. S2 0.6248
3. S3 0.622

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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