- A modest USD weakness helped AUD / USD gain some positive traction on Thursday.
- Mixed technical indicators on hourly / daily charts warrant aggressive traders’ caution.
- A sustained move beyond the 0.7315-20 region is needed to confirm a bullish breakout.
The pair AUD/USD It maintained its offered tone heading into the American session and spiked to a week and a half high around the 0.7310 region in the last hour.
The risk appetite boost in the markets undermined demand for the safe-haven US dollar, which, in turn, was seen as a key factor benefiting the perceived riskier Aussie. However, prospects for an early Fed policy tightening and better-than-expected weekly US jobless claims helped limit USD losses, limiting AUD / USD gains.
From a technical perspective, the bulls should wait for a sustained move beyond the 0.7315-20 bid zone before positioning for further gains. The AUD / USD pair could overcome the intermediate hurdle of 0.7365 and regain the 0.7400 level. Momentum could extend towards 0.7450 en route to September swing highs near the 0.7475-80 area.
Meanwhile, the technical indicators on the hourly charts have been gaining positive ground and are still far from being in the overbought zone. However, the oscillators on the daily chart, although they have recovered from negative territory, have yet to confirm a bullish bias. This further warrants some caution for aggressive bull traders.
On the other hand, the horizontal zone 0.7225-20 now appears to have emerged as an immediate strong support for the AUD / USD pair ahead of the 0.7200 mark. A convincing break below will shift the bias in favor of bearish traders and set the stage for a slide towards challenging swing lows, around the 0.7100 round level, which was touched on August 20.
4 hour chart
Technical levels
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