AUD/USD bullish reversal targets 78.6% retracement

By FXStreet FXStreet (Guatemala) – AUD/USD remains better bid within a post a dovish FOMC and bullish CPI’s earlier in the week from the Australian economy.

The major commodity currency has fared well while copper and oil have both made a good recovery, with both in a technical reversal of the 2016 downtrend. AUD/USD made a fresh high and scored territory through that 0.71 handle at 0.7128 but has settled back on profit taking amidst a weaker greenback across the board.

Technically, with the price in a bullish trend, the first support comes at the 20 sma on the hourly sticks ahead of 0.7040 and 0.7020 in the vicinity of the 100 sma on the same time frames and the 20 dma. However, should price continue to sell off, the support line at 0.6964 and psychological 0.69 guards 0.6875 20 Jan low and 0.6827, the 2016 low. On the upside, price targets the 55 day ma at 0.7140 and a penetration of there could give way for a test of 0.7221, the 78.6% retracement.
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Source:: FX Street