- Aussie gains momentum against the dollar amid optimism in markets.
- AUD / USD extends bounce from around 0.70.
AUD / USD is rising again after Thursday’s pause, picking up the rebound from almost a month’s lows on Tuesday. The price climbed to 0.7157 on Friday, the highest level since October 15.
The Bullish tone is being supported by a general decline of the dollar in the market. The dollar index is erasing Thursday’s gains and is falling towards 92.70, still above the lows of the current week.
The futures of Wall Street points to a positive opening, after the debate between President Trump and Biden. The economic calendar shows the publication of the PMI for October on Friday as a relevant event. In Europe the readings were mixed.
Technical overview
The AUD / USD is gaining momentum and support from a technical point of view, especially after breaking above 0.7130. In case of continuing above, the moment will favor the Aussie. The price faces stiff resistance at the 0.7160 area and should it break above it, it would be expected to approach 0.7200.
In the opposite direction, a return below 0.7125 would leave the Aussie weak, with the 0.7095 / 0.7100 zone exposed. This last level, in addition to being a horizontal support, is where the 20 moving average is on the four-hour chart. In a broad perspective, key support remains around 0.7000, which curbed declines in September and in the current month.
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Credits: Forex Street
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