The latest 22 December AUDUSD Technical Outlook shows the pair as it clings to gains above 0.77 handle. Meanwhile, US macro data eyed for fresh impetus.
22 December, GKFX – The AUD/USD pair built on its overnight bullish break through the 0.7700 handle and jumped to 7-week tops in a rather quiet trading action on Friday.
• Extends overnight bullish break above 200-DMA.
• Subdued USD demand/US bond yields supportive.
• US macro data eyed for fresh impetus.
The pair, on Thursday, finally broke out of its 5-day old narrow consolidative band and surpassed a key technical barrier marked by the very important 200-day SMA.
Despite some supportive factors – passage of a long-awaited tax reform legislation and approval of a bill to avert a government shutdown, the US Dollar has failed to gain any meaningful traction and has been one of the key factors driving the pair higher.
Meanwhile, a subdued action around the US Treasury bond yields/copper prices did little to dampen the prevalent bullish sentiment around the higher-yielding/commodity-linked Australian Dollar.
With the USD price dynamics acting as an exclusive driver of the pair’s movement, today’s US economic docket would now be looked upon for some fresh impetus amid pre-holiday relatively thin trading conditions.
22 December AUDUSD Technical Outlook
Immediate resistance is pegged near 0.7730 level (early Nov. high), above which the pair is likely to aim towards testing 100-day SMA hurdle near the 0.7785 region ahead of the 0.7800 handle.
On the flip side, the 0.7700-0.7695 region (200-day SMA) now becomes immediate support, which is followed by a strong horizontal support near the 0.7665 level and 0.7640 area.
This article “22 December AUDUSD Technical Outlook” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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