AUD/USD is currently bid again testing the recently made highs of 0.7258.
AUD/USD has been on a steady drift this month, rising from the Jan lows and extending the bid to exceed previous early Feb high. Despite the RBA’s preferred levels, the market is in control and continues towards completing the 2016 downtrend at the 0.73 handle.
A break here puts the pair in good stead to do so as well, with only 0.7280 in its way and a poor show from today’s US GDP Q4 2nd estimate could be the catalyst to propel the bulls further. Adding to the support is today news for the PBoC:
PBOC Governor: No basis for persistent RMB depreciation
AUD/USD levels
As mentioned, the upside target is 0.7300. A break of the mid point of the current handle exposes the critical level and exposes the 200 day ma at 0.7268. “Currently this recovery could extend towards the 0.7335 8 month resistance line and even to 55 week moving average at 0.7400. We note the TD perfected set up on the 240 minute chart and this points to initial failure,” explained Karen Jones, chief analyst at Commerzbank.
(Market News Provided by FXstreet)