AUD/USD hits fresh monthly highs near 0.7260

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The bid tone surrounding the AUD/USD pair strengthened further over the last hours, taking the rate to fresh one-month highs.

    AUD/USD underpinned by EUR/AUD drop

    Currently, the AUD/USD pair trades 0.26% higher at 0.7246, retreating from fresh multi-week highs printed at 0.7259 in last hours. The Aussie extends its winning streak into a second day this Tuesday, completely ignoring the persisting risk-off trades seen on the European indices, as the selling in the EUR/AUD cross underpins the bullish momentum seen around the pair. EUR/AUD drops -0.50% to 1.5185 levels, mainly on the back of the ongoing weakness in the EUR/USD pair.

    However, the upbeat tone appears to lack follow-through as the declining oil prices continue to dent the sentiment around the resource-linked Aussie. Meanwhile, market await the US dataflow for further momentum on the major.

    AUD/USD Technical Levels

    Analyst at Windsor Brokers ltd noted, “the pair consolidates yesterday’s strong rally that cracked former top at 0.7241, posted on 04 Feb and fully retraced 0.7241/0.6972 correction. North-heading daily indicators and MA’s in firm bullish setup, suggest further upside and test of immediate barrier at 0.7278, falling 200SMA, above which, there will be open way towards 0.7325, lower top of 31 Dec 2015 and 0.7383/76 zone, 04 Dec 2015 peak / weekly Ichimoku cloud base, in extension. Corrective dips should be ideally contained above 0.7150, where bull-cross of daily 10/100SMA’s is forming.”
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