• AUD/USD rallied to an eight-month high against the U.S. dollar on Thursday as trade deal optimism spurred a move into higher-yielding currencies.
• The U.S.-Japan trade deal sparked hopes that more accords might emerge shortly to avert wide-ranging tariffs.
• The U.S. has secured trade agreements with both the Philippines and Indonesia, and a deal with the European Union is anticipated soon.
• A trade agreement between the U.S. and EU is reportedly close, with plans to implement 15% tariffs on European imports while exempting some items, European Commission officials stated.
• The latest developments boosted risk appetite globally, leading to a rally in risk assets and a decline in demand for the U.S. dollar.
• Immediate resistance is located at 0.6622(Higher BB), any close above will push the pair towards 0.6722(23.6%fib )
• Support is seen at 0.6582(38.2%fib) and break below could take the pair towards 0.6553(SMA 20).
Recommendation: Good to buy around 0.6610 with stop loss of 0.6550 and target price of 0.6680
