- AUD/USD inched higher to trade around 7 month high on Monday as strong gains in oil prices supported Aussie bulls.
- Much of the move in the Aussie dollar was due last week’s unexpected acceleration in fourth quarter economic growth and further supported by strong surge in oil prices.
- Currently the pair is making an attempt to test support level at 0.9475.
- Further decline is expected to be limited as the pair finds strong support at 0.7414 which should limit downside and initiate rebound back towards higher side.
- To the upside, the strong resistance can be seen at 0.7500, a break above this level would take the pair towards next resistance level at 0.7600.
- To the downside immediate support can be seen at 0.7475, a break below this level will open the door towards next level at 0.7414.Resistance LevelsR1: 0.7500 (Psychological levels) R2: 0.7538 (38.2% Retracement level)R3: 0.7618 (23.6% Retracement level)Support LevelsS1: 0.7475 (50% Retracement level)S2: 0.7414 (61.8% Retracement level)S3: 0.7390 (Daily lows)
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