AUD/USD: risk-on rally finally breaks 1hr 200 sma

By FXStreet FXStreet (Guatemala) – AUD/USD has finally popped the 200 sma after a double top that reached a target of the 0.6880 level before bulls rearranged themselves and took out the mid point of the 0.69 handle for a test of the 0.70 handle.

This is a significant move technically considering the 200 sma on the hourly has not been properly penetrated since the start of the year. Fundamentally, risk across the board has rallied in recent trade with copper on the bid, WTI recovering over $2bbl, S&P making new highs since Tuesday’s session and the USD/JPY rallying as well.

AUD/USD levels

Technically, as said, the 0.70 is the target and price is well on course with intrinsic fundamentals coupled with the break of the 200 sma on the hourly chart. The real test will be 0.7020 and then a break of the 100 sma on the 4hr sticks.

That is well feasible wi RSI (14) at 55 and neutral on the same time frames and momentum in the prices favour. However a close above the pivot of 0.6891 will need to be achieved and in the absence of follow through in the US session, Asia could be the bull’s playground for …read more

Source:: FX Street