AUD/USD challenges 2016 highs

By FXStreet The Australian dollar soared, to flirt with the 0.7300 level against the greenback, underpinned by a much stronger-than-expected Q4 GDP reading, which beat market and RBA consensus and evidences the economy is far from slowing down, in spite of Chinese woes.

AUD/USD gathered renewed momentum during the American afternoon, breaking above the 200-day SMA and shooting toward its highest level since Jan 4. Having peaked at 0.7298, the pair stalled just a few pips shy of its 2016 high of 0.7300. At time of writing, AUD/USD is trading at 0.7294, 1.69% higher on the day.

AUD/USD technical outlook

“The 1 hour chart shows that the technical indicators are losing upward momentum within overbought territory, yet with the price holding on to its daily high and far above a sharply bullish 20 SMA, the upside remains favored,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators continue heading higher, also in overbought territory, while the price is now far above its moving averages, indicating some continued advance beyond 0.7300 for this Thursday.”

Support levels: 0.7260 0.7225 0.7170. Resistance levels: 0.7300 0.7340 0.7395.
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Source:: FX Street