- AUD / USD remains stable, near highs in the 0.7740 region.
- The pair has yet to break above the downtrend line from the January 6 high.
AUD / USD is trading virtually unchanged on the day at the start of the European session on Wednesday, near 0.7740, after recovering from a low of 0.7726 reached during the Asian session.
The pair appears to be on its way to test the resistance of the downtrend line connecting the highs on Jan 6 and Jan 14, having risen for the third day in a row the day before.
A close above trend line resistance, currently at 0.7758, would signal the resumption of the broader uptrend, from the early November low of 0.6991, and would open the doors for a retest of the 6 November high. January 0.7820.
A breakout seems likely as expectations of fiscal stimulus could continue to weigh on the US dollar. Meanwhile, the AUD is pointing higher, courtesy of the rally in oil and other commodities and the latest rally in China’s producer price index.
AUD / USD daily chart
AUD / USD technical levels
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