In a buoyant market, the AUD/USD exchange rate seeks to surpass 0.7000.

Market Analytics and Considerations

Key Notes

• The Australian Dollar has gotten stronger due to a positive market climate.
• The 20- and 50-EMAs with a northward slope complement the upward filtration.
• Bullish impetus is now operating, as the RSI (14) has moved into the constructive zone of 60.00–80.00.

In the Asian session, the AUD/USD pairing is exhibiting lateral displacement market near the current resistance line of 0.6930. The Australian asset is expected to continue climbing despite the US Dollar Index’s extreme volatility (DXY). The USD Index is currently trading under 103.25 and is anticipated to retest its 6 low underneath the key support level of 103.00 amid a risk-taking mood.

S&P500 futures have increased from Friday’s gains as investors anticipate a slowing in the Federal Reserve’s (Fed) pace of monetary hardening. The 10-year US Treasury yields decreased to 3.56percentage points in the meantime.

On a 4 timespan, the Australian asset has produced a bullish breach of the horizontal resistance line is drawn from the top of December 13 at 0.6880, which is currently protection. Additionally, the Australian Dollar’s resilience is shown by the Rising Channel graph pattern’s breakthrough.

The upside filters are supplemented by skyward 20- and 50-period Exponential Moving Averages (EMAs) at 0.6833 and 0.6800, correspondingly.

Additionally, the bull market band of 60.00–80.00 has been crossed out by the Relative Strength Index (RSI) (14), indicating that the upward impetus has started.

Traders would benefit most from buying after a correction after a strong rise, which would take the major towards Monday’s peak at 0.6930 followed by the psychological resistance around 0.7000.

On the other hand, a downward movement underneath the bottom of December 29 at 0.6710 could push the key farther into the low points of December 22 at 0.6650 and Nov 21 around 0.6585.

Technical Key Levels to watch