AUD/USD: Techs support further advances – FXStreet

By FXStreet FXStreet (Bali) – After having a stellar bullish run last week, the Aussie has opened slightly weaker in Asia, currently at 0.7228 against 0.7238 last NY close, with Valeria Bednarik, Chief Analyst at FXStreet, noting that indicators support further advances.

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The Australian dollar surged to a 3-week high of 0.7249 against its American rival, and closed the week a few pips below such high, standing among the best weekly performers.

The Aussie got a boost last Friday, after the PBOC announced a rate cut for its Standing Lending Facility (SLF) for local financial institutions across several maturities, in another attempt to support local economic growth.

The AUD/USD daily chart shows that the price has advanced well above a bullish 20 SMA, whilst closing above its 100 DMA, for the first time in almost three months, and that that the technical indicators maintain their bullish slopes well above their mid-lines, all of which supports further advances.

In the 4 hours chart, the Momentum indicator maintains its upward slope, despite being in extreme overbought territory, whilst the RSI has lost its upward strength, but holds around 72, supporting some consolidation ahead the next directional move.
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Source:: FX Street