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AUD/USD: bulls be lurking below 20 4hr SMA - FXStreet

FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the AUD/USD pair advanced up to 0.7282, its highest in 5 weeks, but ended the day unchanged around 0.7240, having established a higher high and a higher low daily basis, but also giving some signs of upside exhaustion in the daily chart, anticipating some downward movement for the upcoming sessions.

Key Quotes:

"The RBA will have its last economic policy meeting of the year next week, and is expected to remain on hold, which should result in some additional Aussie strength, or at least, prevent the currency from sliding. Anyway, the pair needs to extend beyond the highs posted early October around 0.7380, to confirm a steadier advance in term."

"In the meantime, the short term picture suggests the pair may correct lower, as in 1 chart, the price develops below a horizontal 20 SMA, while the technical indicators head slightly lower below their mid-lines.

In the 4 hours chart, however, the price remains above its 20 SMA, while the technical indicators aim north in positive territory, favoring further gains after a short term downward corrective move."

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