The AUD/USD pair regained high quality traction on Thursday and reversed the preceding day’s modest losses. The underlying bullish sentiment undermined demand for the safe-haven USD and was once considered as a key component that benefitted the perceived riskier aussie.
From a technical perspective, the in a single day pullback from two-week tops stalled close to a one-month-old descending trend-line resistance breakpoint, close to the 0.7715 region. The emergence of some dip-buying close to the resistance-turned-support favours bullish traders.
The optimistic outlook is bolstered by means of bullish technical indications on intraday/daily charts. That said, bulls may nevertheless want to wait for some follow-through shopping for past the in a single day swing highs, round the 0.7755 region, earlier than putting sparkling bets.
Above the stated hurdle, the AUD/USD pair looks all set to construct on its current appreciating cross and purpose again to reclaim the 0.7800 mark. The momentum ought to sooner or later push the pair lower back closer to multi-year tops, round the 0.7820 area touched on January 6.
On the flip side, the 0.7715 vicinity may proceed to act as on the spot assist and is intently observed via the 0.7700 mark. A convincing damage beneath the latter would possibly immediate some technical promoting and speed up the slide in addition in the direction of the 0.7660 horizontal support.
Some follow-through weak spot will negate the near-term effective bias and flip the AUD/USD pair inclined to take a look at the 0.7600 round-figure mark. The downfall ought to in addition get prolonged again toward difficult month-to-month swing lows, round the 0.7565 region.