Audusd Jumps Back Above

last updated on

Audusd Jumps Back Above

Aud/Usd Jumps Back Above 0.6550

AUD/USD is now trying to rise from its multi-month lows and has already crossed the 0.6550 handle. While the Australian Dollar is rising from lows, the US Dollar is now retracing lower from its 6-month highs.

It seems that the traders are now exiting their positions and booking their profits. This comes as the markets are now anxiously awaiting the release of CPI inflation.

Aud/Usd Faces Resistance At 0.6687

On the way up, the first resistance that will be faced by AUD/USD is 0.6687, which is the high of November 2024. Also, the 100 SMA is also present there which makes it an even important level. Beyond that lies the 55 SMA present at 0.6715.

If the AUD/USD manages to clear all of these levels, the next rest stop will be 0.6942, which is the high for 2024.

On the flip side, the next support is 0.6511, which is the lowest in November. Beyond that lies the 0.6347 support, which is also at the bottom of 2024.

On the H4 chart of AUD/USD, the negative trend is still dominant. If we look at the support levels on H4, it can be seen at 0.6528 and 0.6511. On the flip side, the resistance on the H4 chart is seen at 0.6590 and then 0.6606.

If we look back, the march of the US Dollar seems to have come to a halt amid profit-taking by investors. At the same time, the AUD, which was once struggling, is now showing a little bit of bullish momentum.

However, AUD/USD is still below the 200 SMA seen near 0.6629. This means the momentum still favors the USD as the AUD faces more downside risks.

Another factor that is making things difficult for the AUD is the Chinese data, which was disappointing from every angle. The consumer prices in China are rising at their slowest pace based on the 4-months. That's a sign that the Chinese economy is still under the grasp of deflationary pressures.

Trending Stories