SocGen: AUD/USD To Extend Its Rebound After Crossing 0.6810
According to SocGen economists, the AUD/USD pair is fast approaching the resistance zone located around 0.6810 - 0.6850. In other words, there's a chance that the AUD/USD pair might retreat once it starts to trade between 0.6810 to 0.6850.
But if the AUD/USD pair manages to break this resistance zone (0.6810 - 0.6850), it would lead to more upside. However, the bulls will need to defend the 200 SMA (daily) located near 0.6690 in order to keep the positive sentiment.
In addition, the MACD on the AUD/USD daily chart is also showing positive divergence, which hints toward the weakening of the bearish forces.
Overall, the technical outlook of the AUD/USD is positive, but the upcoming resistance zones located at 0.6810 and 0.6850 may pose a risk to the recovery.
After all, the AUD/USD has only recently managed to close above the 200 SMA (daily). In addition, we also need to remember that AUD/USD breaks the 200 DMA like this during the months of April and May. At that time, the upward momentum in the AUD/USD failed to hold.
That's why it is also important for the AUD/USD to uphold the MA located at 0.6690, as it will pressurize the pair towards the upside.
Furthermore, the AUD/USD pair is also approaching the high made during April, located at 0.6810/0.6850, which remains an important zone. From a technical point of view, a cross above this will lead us toward the 0.6910, followed by a test of the 0.7000.
The 0.7000 level in the AUD/USD also coincides with February's 76.4% fib retracement. In addition, it is also a round figure which is always regarded as important zones in technical trading.
And last but not least, the fundamental outlook of the AUD and the USD will also play a key role in this pair. Any signs of weakness from the AUD or strength from the USD will reverse the current bullish momentum in the AUD/USD pair.