The AUD/USD currency pair is recovering nicely after finding some support at a key level. Yet it is gaining momentum, having lifted away from the 0.6440 base. On Wednesday, the two started picking up steam. It rose above the important 0.6500 psychological level again, a bullish trigger point for traders as it indicates a potential reversal of trend. That seems to be a good thing considering the generally weaker US Dollar, which of course is a rather positive environment for the Aussie dollar.
The last time I would recommend being bullish on the AUD/USD pair. This uptick follows a late-session rebound from yesterday’s trading session, during which the pair touched its lowest quote since August 22nd. Second, the US Dollar has dropped a lot, which is an enormous sea change in momentum. Consequently, the Australian dollar has skyrocketed in value relative to its American sister. While the AUD/USD pair continues upward, look out for these major support and resistance levels. All of these levels are important and can dictate the market’s next big move.
Market analysts note that any serious break under the 0.6480-0.6475 zone will attract additional buyers. The 200-day Simple Moving Average (SMA) support holds traders’ attention as well, which currently is located in the 0.6425 area. This area has the potential to serve as an important floor this time around for the pair. Read more support sits at the 0.6400 round number and within the horizontal support areas of 0.6375-0.6370 and 0.6350.
On the upper end, the AUD/USD pair’s ability to maintain strength beyond the 100-day SMA could signal a shift in bias favoring bullish traders. If prices are able to regularly breach this resistance once more, they may retest the year-to-date highs. Those highs were hit in September when the AUD/USD pierced through the 0.6700 level. Traders will be closely attuned to these news, especially as they tie into overall market conditions.
Moreover, the AUD/USD pair trends offer daunting purposes on the 0.6625-0.6630 neighborhood that could set up hindrances for extra profit. On the flip side, if it is able to retake the 0.6600 level, it might open the door to more upside progress.