AUD/USD Price Analysis: Trades above the 100-DMA, hovers around 0.7420

• The Aussie climbs on the back of broad US dollar weakness.
• The market sentiment is mixed, as Asian equity futures seesaw between gainers and losers.
• AUD/USD: Downward pressured, as the 200-DMA remains above the spot price.

The AUD/USD begins the Asian session on the right foot, climbs 0.05%, trading at 0.7419, during the day at the time of writing.

The market sentiment was upbeat on Thursday, as portrayed by European and American stock indexes, finishing in the green. The US Dollar weakened across the board, slid 0.11% to end at 93.97, underpinned by falling US T-bond yields, with the 10-year benchmark note coupon, down three basis points, finished at 1.516%. 

As the  Asian session starts, the current mood, as witnessed by Asian equity futures, is split between gainers and losers. Meanwhile, the S&P/ASX Australian Stock Exchange and the Nikkei 225 are rising 0.60% and 1.46%, respectively.

AUD/USD Price Forecast: Technical outlook

Daily chart

The AUD/USD is trading below the 200-day moving average (DMA), indicating the pair is in a downtrend. The 50-DMA is well below the price action, whereas the 100-DMA at 0.7410, while underneath, is near the spot price. Momentum indicators like the Relative Strength Index (RSI) at 64 supports the upward trend, but a daily close above the 100-DMA could open the door for further gains.

In that outcome, the first resistance for the AUD/USD pair would be the September 3 high at 0.7477, immediately followed by 0.7500. A breach of that area would expose the 200-DMA at 0.7567.

On the other hand, failure at the 100-DMA would resume the downward trend, pressuring the pair towards the October 13 low at 0.7322. A clear break below the latter would expose key support levels, like the 50-DMA at 0.7304, followed by the October 6 low at 0.7225.

AUD/USD: KEY ADDITIONAL LEVELS TO WATCH