AUD/USD chart - Trading View
AUD/USD pair refreshes monthly highs above 0.78 handle, outlook is strongly bullish. Aussie remains bid even as minutes of the RBA February meeting suggested continued monetary stimulus.
The RBA minutes highlighted the need for significant monetary support, adding that few signs of deterioration in home lending standards were noticed which would be monitored closely.
Downbeat RBA minutes were largely ignored by Aussie bulls. Hopes of the US covid relief stimulus package and the recent positive developments over the coronavirus vaccine keeps the markets buoyed. US 10-year Treasury yields, S&P 500 Futures and ASX 200 all print market optimism.
Technical bias for the pair is bullish. MACD shows a bullish crossover on signal line and ADX is rising with positive DMI dominance. Pullbacks in price action have held strong support at 50-DMA and momentum indicators have turned bullish. Volatility is rising as evidenced by widening Bollinger bands.
The pair is on track to test 88.6% Fib at 0.7836. Next major bull target lies at 200 month moving average at 0.8253. After a spinning top at 110 month EMA, the pair is extending gains. Retrace below 110 month EMA at 0.77 will jeopardize the pair's upside potential.
