Thursday, 2 February 2017

AUD/USD Bulls Keep On Moving

The AUD/USD pair powerfully moved to the upside and printed fresh three month high at 0.7695 today. Strong macro data from Australia supported the surge, driven mainly by the fantastic trade surplus. 
Upon the US session the pair pulled back and is currently trading at 0.7661. 
Since January 17th the pair  has been caught within relatively tight range, but now seems to be getting out of it. In the short run this performance could be read as correction to the downside. But the four-hour time frame is indicating bullish trend. The price has crossed to above the 20-day SMA, which is also in tact with the bulls. RSI has retraced from the overbought territory and Stochastic has turned to south. Generally this is against the short term bullishness, but I think that both indicators are now in favour of the current pullback and do not significantly prove further decline. Strong support is seen at 0.7600 and lower at 0.7550. Resistance is located now at 0.7695 and higher at 0.7777.


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