AUDUSD: Aussie Tests Strong Resistance

The Australian Dollar continued to rise on Thursday and the AUDUSD pair was up 0.40 percent during the London session, as traders dumped the greenback after Wednesday’s dovish Powell’s remarks.

The pair was testing a strong resistance of previous highs, which is at 0.7340. If this level is taken out, the upward momentum could be confirmed and the next target for bulls might be at 0.7420, where the 200-day moving average is located. The greenback seems to be losing broadly, weakened by the mentioned Powell’s speech and thus the AUDUSD pair could be supported by this fact.

On the downside, the support could be located at around 0.7250, where the 100-day moving average is seen and then at the bullish trend line, which is near 0.7220.

The RSI indicator is also rising and testing previous highs, therefore there are no negative divergences. If the price rises to new highs and so does the indicator, it could be another bullish signal for the AUDUSD pair.

Sentiment remains positive for the AUDUSD pair and investors might pay attention to today’s US CPI data, which could spur further volatility on the USD pairs.

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