FXStreet (Córdoba) – AUD/USD continued to trend higher during the American afternoon, breaking above the 100-day SMA among other key resistance levels, as the greenback’s sell-off intensified.
There were no clear catalysts for the slump witnessed in the US dollar, although dovish comments from Fed’s Dudley ignited the downward move at the beginning of the New York session.
AUD/USD has climbed more than 150 pips and broke above last week’s highs to reach a peak of 0.7186, last seen on January 4th. At time of writing, the pair is trading at 0.7180, recording a 2.05% daily gain.
The Australian dollar has been on recovery mode from a multi-year low scored mid-January at 0.6826. Next major level on the upside could be found at 0.7280, which is the 2016 starting point.
AUD/USD levels to watch
Above 0.7280, other resistances are seen at 0.7303 (Dec 31 high) and 0.7337 (200-day SMA). Meanwhile, immediate supports could be found at 0.7140 (100-day SMA), 0.7002/00 (Feb 3 low/psychological level) and 0.6918 (Jan 26 low).
(Market News Provided by FXstreet)