AUD/USD Price Analysis: Rises above 0.67 as S&P 500 futures turn positive, teases bull RSI divergence
- AUD/USD is likely tracking the S&P 500 futures higher.
- A positive daily close would confirm a bull divergence of the RSI.
The buying interest around the Australian currency is gathering pace with signs of a positive turnaround in the US equity index futures.
The AUD/USD pair has added over 20 pips in the last hour or so and is now trading at a session high of 0.6705, representing a 0.50% gain on the day.
The pair is likely tracking the S&P 500 futures, which are currently reporting 0.20% gains, having gapped lower by 0.5% in early Asia.
While the risk reset is helping the AUD at press time, big gains may remain elusive if the European desks put a bid under the greenback in response to Friday's US Nonfarm payrolls data.
That said, if the pair manages to end Monday on a positive note, a bullish divergence of the 14-day relative strength index (RSI) would be confirmed.
A bullish divergence is considered an advanced warning of a bearish-to-bullish trend change. A stronger confirmation of trend change, however, would be a daily close above the lower high of 0.6774 created on Feb. 5.
Trend: Teasing bull divergence