- The Australian dollar rises against the US dollar and recovers 0.7100.
- DXY in negative territory, far from last week’s lows.
The AUD/USD trades at daily highs at 0.7116. It has been moving all day with a supported positive bias, recovering after falling sharply on Friday as the dollar rose on the release of the NFP figures.
The dollar is posting mixed results on Monday, while the Australian dollar is among the best performers in the entire G10 space. AUD/NZD erased Friday’s losses and is eyeing last week’s highs above 1.0730, while EUR/AUD pulls back from five-month highs below 1.6100.
AUD/USD Outlook
AUD/USD rose almost 50 pips on Monday. The outlook remains biased to the downside. A recovery above 0.7165 would be a positive development for the Aussie as it breaks horizontal resistance and also rises above the 20 and 55 day simple moving average. The next strong resistance is located at 0.7220 followed by 0.7250 (100-day simple moving average).
A drop back below 0.7100 would keep the door open for a test of the recent low at 0.7050, the latest protection at 0.7000. A weekly close clearly below 0.7000 should point to further losses in the medium term.
Technical levels
Source: Fx Street
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