AUD/USD pulled back during the American session after reaching 0.7516, the highest level in almost three weeks. The pair dropped to 0.7490 and currently is hovering around 0.7500, up 25 pips from yesterday’s closing price. The aussie is headed toward the third daily gain in a row against the US dollar.
The pair is receiving support from a weak greenback. The US dollar today is steady against European currencies and the yen but is losing ground against commodity and emerging market currencies.
AUD/USD continues to move with a clear uptrend bias, rising constantly since May 10. A break below 0.7440 could change that bias.
“In the short term, the positive tone prevails despite the lack of upward momentum, as the price advances further above a bullish 20 SMA and beyond a still horizontal 200 EMA in the 4 hours chart”, said Valeria Bednarik, Chief Analyst at FXStreet.
Technical indicators, Bednarik notes, in the 4-hour chart lack directional strength but hold within overbought levels, with no signs of easing at the time being. “The pair topped at 0.7516 today, with an extension beyond it favoring additional gains up to the 0.7600 region, the base of the range that held the price between most of February and March.”