Persistent greenback selling bias, with the key US Dollar Index dropping to its lowest level has remained supportive of the pair’s strong up-move. The 28 December AUDUSD Technical Outlook explains more.
28 December, GKFX– The AUDUSD pair extended its relentless rally further beyond 100-day SMA barrier and is currently placed just a few pips above the 0.7800 handle or 2-month tops.
The pair built on last week’s bullish break through the very important 200-day SMA and has now recovered 300-pips from the key 0.75 psychological mark, touched on December 8.
• Weaker USD adds fuel to the recent strong rally.
• Bullish copper prices provide an additional boost to Aussie.
• Second-tier US data unlikely to hinder the bullish trajectory.
Persistent greenback selling bias, with the key US Dollar Index tumbling to its lowest level since the last week of September, remained supportive of the pair’s strong up-move.
Adding to this, the recent strong bullish run-up in copper prices provided an additional boost to the commodity-linked Australian Dollar and further collaborated to the pair’s up-move to its highest level since October 24.
Meanwhile, possibilities of some stops being triggered, on a sustained move above 100-DMA hurdle near the 0.7780 region, might have also contributed to the pair’s upsurge through the early European session on Thursday.
Moving ahead, traders would now take cues from today’s second-tier US economic releases, with an extension of the momentum, led by some follow-through short-covering amid pre-holiday thin liquidity conditions, now looking a distinct possibility.
28 December AUDUSD Technical Outlook
Immediate resistance is now pegged near the 0.7835-40 region, above which the pair is likely to dart towards 0.7875-80 supply zone en-route the 0.7900 handle.
On the flip side, 0.7780 area (100-day SMA) now becomes an immediate support to defend, which if broken might trigger a profit-taking slide towards 0.7740-30 horizontal support.
This article “28 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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