AUD/USD chart - Trading View
AUD/USD was trading 0.32% higher at 0.7038 at around 06:10 GMT, bias bullish.
The pair is extending gains for the 3rd straight session, scope for further gains.
RBA's governor Lowe said that the Aussie dollar is trading broadly in line with the fundamentals.
He noted that the central bank has till now refrained from verbal intervention and also stated that there is no need to push down the Aussie dollar.
Ongoing risk-on action in the equity markets which are buoyed by expectations for a fiscal rescue package in Europe and progress toward a coronavirus vaccine add support to the Aussie.
Technical studies support gains. Major and minor trend are bullish. Price action is above major moving averages.
Volatility is rising. Next major bull target lies at 200W SMA at 0.7261. Bullish invalidation below 200-DMA.
Looking forward, traders will focus on the US policymakers’ discussion over another tranche of fiscal stimulus along with virus updates.
Major Support Levels:
S1: 0.6948 (21-EMA)
S2: 0.6936 (110W EMA)
S3: 0.6845 (Lower BB)
Major Resistance Levels:
R1: 0.7064 (June 10 high)
R2: 0.71 (Psychological mark)
R3: 0.7261 (200W SMA)
Summary: Outlook for the pair is bullish. Comments from the RBA also add support. Scope for further gains and dips could be used to accumulate long positions.
