AUD/USD Extends Its Bullish Momentum to 0.7450

AUD/USD Extends Its Bullish Momentum to 0.7450

7 June 2016, 13:12
Roberto Jacobs

AUD/USD Extends Its Bullish Momentum to 0.7450

Bulls maintained their firm grip on the AUD/USD pair, boosting the pair further to a fresh session high level of 0.7450.

Earlier during the day, the Aussie gained traction after the RBA held status-quo and left it its benchmark interest-rates unchanged at 1.75%. Although the decision was broadly in-line with market expectations but the Aussie got a boost as RBA did not provide any explicit signal of further easing in the near-term.

Meanwhile, dampening expectations of an imminent Fed rate-hike in June/July continues to weigh on the greenback, thus boosting commodity-linked currencies, like AUD, higher.

From technical perspective, Friday's rally assisted the AUD/USD pair to move past 200-day SMA strong resistance. Moreover, today's momentum further boosted the pair beyond 100-day SMA resistance, thus opening room for further appreciation for the pair.

Technical levels to watch

On a sustained move above 0.7450 level, bulls might be aiming to reclaim 0.7500 handle and the momentum could get extended towards 0.7530-40 strong resistance. On the flip side, 0.7410-0.7400 round figure mark now becomes immediate support on the downside. Any dip below 0.7400 mark is likely to be short-live and might be bought into near 100-day SMA, resistance break turned strong support, around 0.7370-65 region.


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