AUD/USD keeps the early week bounce going

The stronger Chinese language yuan is the primary purpose serving to the antipodean currencies right now, with AUD/USD main positive aspects as it’s up 0.5% to 0.6770 presently. The pair continues to maintain a bounce off its 200-day transferring common from yesterday, however what’s the remainder of the technical image saying?

Within the larger image, key resistance continues to lie nearer to the June and early July highs close to 0.6900. That is not fairly within the body for now however the 200-day transferring common (blue line) at 0.6721 is. That now defines the important thing draw back help for the pair, earlier than attending to the 100-day transferring common (purple line) at 0.6687.

As for the newest bounce right now, there are additionally some near-term challenges:

The pair did run into some resistance from its 100-hour transferring common (purple line) earlier however patrons are hoping to push previous that now. If that’s the case, the near-term bias would then flip extra impartial as an alternative. Nevertheless, there’s nonetheless additional resistance from the 200-hour transferring common (blue line) at 0.6800.

I’d pin that as being the place sellers may make a stronger stand in holding the latest draw back momentum going.

Briefly, we’re seeing AUD/USD worth motion proceed to respect key technical ranges on the charts. Specifically, the every day chart reveals that the rejection close to 0.6900 is adopted up by a take a look at of the 200-day transferring common and that has held on the primary try.

We’ll see if sellers have additional urge for food in attempting for that once more but when they’re to take action, they must put their foot down as famous on the near-term chart above. Tomorrow shall be an enormous day to make or break such a story, as we can have Australia CPI knowledge in addition to the Fed coverage resolution arising.

So, do not count on the pair to sit down nonetheless for too lengthy.