• AUD/USD steadied around 0.6735 on Friday as weaker greenback and stronger commodity prices lifted Australian dollar.
• Oil prices rose on Friday, extending a rally sparked by output disruptions in the U.S. Gulf of Mexico. Iron ore futures prices extended gains as prospect of fresh Chinese stimulus lifted market sentiment.
• AUD/USD is approaching the 38.2% fibonacci retracement level. A close above this level could lead to a significant rally towards 0.6850 level.
• Technical highlight upside risks for AUD/USD, with momentum studies, 5, 10 and 11 DMAs tracking north.
• Immediate resistance is located at 0.6743 (38.2%fib), any close above will push the pair towards 0.6769 (Sep 6th high).
• Support is seen at 0.6682 (50%fib) and break below could take the pair towards 0.6628 (61.8%fib).
Recommendation: Good to buy around 0.6720, with stop loss of 0.6670 and target price of 0.6820
