AUD: Technical indicators appear supportive - BBH
The Australian dollar posted a key reversal on the daily bar charts on November 21 by making a new low for the move (~$0.7530) and reversing to close above the previous session's high, points out the research team at BBH.
“Follow through buying was slow to materialize, but it did, and the Aussie closed above $0.7600 the following day. It has run into offers near the 20-day moving average (~$0.7635), which it has not closed above in over a month. It also corresponds to a 50% retracement of this month's decline. The daily technical indicators appear supportive for additional gains. Assuming nearby resistance is overcome, the Aussie may work its way back toward $0.7700 over the coming sessions. It will be disappointing it the Aussie closes below $0.7575.”