- AUD / USD is moving higher, along with S&P 50 futures, amid hopes for US stimulus.
- The 1 hour chart confirms the pennant breakout and the bullish crossover.
- The RSI is strengthening, holding firm within the positive territory.
The AUD / USD pair has found new buying once again just above the 0.7700 level, making an impressive bounce during the Asian session on Monday.
The resurgence in demand for the Australian dollar could be attributed to improving risk appetite sentiment, amid expectations that the US $ 1.9 trillion stimulus proposal will receive bipartisan support in Congress.
The US dollar retreats across the board as risk appetite returns, while S&P 500 futures are up 0.40%, offering further support to the higher-yielding AUD.
From a short-term technical perspective, the AUD bulls are looking to extend their hold after receiving a double boost.
The upward move has confirmed the breakout of a pennant on the 1-hour chart, while the breakout has received additional momentum after the 100-hour moving average has crossed above the 200-hour SMA, representing a crossover. bullish.
Looking up, AUD / USD could challenge Friday’s high of 0.7770, above which the psychological level of 0.7800 would come into play.
On the other hand, a drop below the 50 hourly SMA at 0.7740 could point to critical support around 0.7732. That area is the confluence of the 100 and 200 hour SMAs.
The convergence of the 21-hour SMA and the broken trend line, now converted to resistance at 0.7721, could halt the further decline.
The RSI has turned down but remains well above the midline, supporting the case for further gains.
AUD / USD 1 hour chart
AUD / USD technical levels
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