AUD/USD: bullish bias for new leg higher - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the AUD/USD pair rallied to a fresh 3-week high of 0.7695 at the beginning of the day, fueled by Nikkei's recovery amid improved market sentiment, although it was again rejected from the major resistance area.

Key Quotes:

"The pair saw a limited downward correction on temporal dollar's strength, but resumed its advance after approaching the 0.7600 region, in spite of the sharp decline in commodities prices during the US afternoon.

The short term picture favors a new leg higher, given that in the 1 hour chart, the Momentum indicator is bouncing from its 100 level, while the RSI indicator heads steadily higher, now around 58. In the same time frame, a strongly bullish 20 SMA has contained declines."