AUD/USD hits fresh highs, still below 0.7550
- AUD/USD recovers after 3-day slide.
- Technical outlook still shows bearish bias prevailing.
The AUD/USD pair rose further during the US session and printed a fresh daily high at 0.7554, the highest level since last Thursday. It was holding near the top, above 0.7530, supported by a weaker US dollar.
AUD/USD rebounds but still under pressure
The Aussie is rising against the US dollar and is moving away from monthly lows. The area around 0.7500 capped the downside last week. Still, the pair is facing bearish pressure on a wider perspective. Today a weaker US dollar helped the pair move to the upside on a relatively quiet day for markets ahead of key events.
Regarding the US dollar the event of the week will be on Wednesday: the FOMC decision, updated projections and Yellen’s press conference. In Australia, tomorrow will be a busy day with the House Price Index, the Mid-Year Economic and Fiscal Outlook report (from the Australian government) and the NBA Business Confidence survey. On Thursday, the November jobs reports will be released.
Levels to watch
Last week AUD/USD broke below 0.7550 and reached the lowest level since June. Today it is rising after falling during three days. If it continues and climbs above 0.7550 it could remove some short-term negative momentum. Above the next key level is the 20-day moving average at 0.7575/80, a daily close above would add support for a recovery. The next key level is seen at 0.7630: a break above would signal a potential bottom, improving significantly the outlook for the aussie.
To the downside, while under 0.7550 another test of 0.7500 should not be ruled out. Below the next supports lie at 0.7470 (Apr 11 & 12 low) and 0.7440 (Apr low).