AUDUSD – renewed strength turns near-term focus higher; US GDP data eyed for fresh signals
The Aussie regained strength on Friday and pressuring 0.81 barrier which was cracked on Thursday’s short-lived spike to 0.8118.
Dollar’s rally on President Trump’s comments favoring strong US currency failed to sustain gains and was limited at psychological 0.80 level which marked our initial support.
Fresh rally today signal that the pair could eventually test key barrier at 0.8124 (08 Sep peak) and signal continuation of steep uptrend from 0.7500 base on completion of 0.8124/0.7500 correction of broader uptrend from 0.6825 (Jan 2016 low).
Bullish techs continue to support advance as rising 10SMA tracks and keeps the downside protected, marking initial support at 0.8006 today and reinforcing psychological 0.80 support.
US GDP data are due later today and eyed for fresh signals, with near-term focus turning towards Australian Q4 CPI data, due next Wednesday.
The pair is on track for the seventh straight bullish weekly close, which marks strong bullish signal for further advance.
Alternative scenario would see increasing downside risk on loss of 0.8000 handle (10SMA / Fibo 38.2% of 0.7807/0.8118 upleg) which would generate initial reversal signal.
Res: 0.8124; 0.8161; 0.8200; 0.8242
Sup: 0.8045; 0.8000; 0.7956; 0.7926