AUD/USD recovers 0.7100 after Friday’s slide

• Australian dollar rises versus US dollar and regains 0.7100.
• DXY in negative territory, far from last week lows.

The AUD/USD is trading at daily highs at 0.7116. It has been moving all day with a positive bias supported, recovering after falling sharply on Friday when the greenback rallied on the back of the NFP report.

The dollar is posting mixed results on Monday while the aussie is among the top performers across the G10 space. AUD/NZD erased Friday’s losses and is looking at last week highs above 1.0730 while EUR/AUD is retreating from five-month highs back under 1.6100.

AUD/USD outlook

The AUD/USD is up by almost 50 pips on Monday. The outlook is still biased to the downside. A recovery above 0.7165 would be a positive development for the Aussie as it would break a horizontal resistance and also rise above the 20 and 55-day simple moving average. The next strong resistance stands at 0.7220 followed by 0.7250 (100-day simple moving average).

A slide back under 0.7100 would keep the door open for a test of the recent low at 0.7050, the last protection to 0.7000. A weekly close clearly under 0.7000 should point to further losses over the medium term.

Technical levels