Monday, 18 December 2017

AUD/USD Higher

Aussie gained traction today and is seen hovering around mid 0.76s amid lack  of strong fundamentals DXY extended its downward slope to a fresh two week low, backed up by weakened US dollar coming form the jitters surrounding the outcome of the tax bills reforms. 
Friday’s bottom has been left behind today’s gains and AUD/USD is entering the Asian session in uplifted mood. Since marking low at 0.75 in 8th of December, the pair has been recovering ground, supported by good macro data from Australia. 
Technically speaking, the short term outlook remains bullish. On the four hour time frame the price is moving above all its moving averages, having 20-day SMA with strong bullish momentum and flat 100-day and 200-day SMAs. RSI is located around its 60 level, but has lost directional strength. Stochastic has turned sharply to north although is at its mid-line. 
Yet the 0.7700 remains critical zone and first bulls’ challenge and in case of conquering it, doors are opened for testing 0.7730 (November’s high). 
RBA minutes are due tomorrow with expectations of no change on its current  monetary policy, but amid no major other news and weak greenback, Aussie favors to the upside. 


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