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Currency
by FXOpen on May 27th, 2019

AUD/USD outlook: the pair is currently consolidating gains

Weak data from Australia’s largest customer and RSI overbought levels indicate another pullback from important resistance. Numerous support levels at the downside may cause some challenge for sellers.

Considering the technical reasons affecting the weak imprints of China’s industrial profits, the AUD/USD pair is trying to overcome the 0.6935/40 resistance during the early Asian session this Monday.

Taking into account both the fundamental and technical signals indicating the next pullback of the pair from the important resistance, 0.6900 and 0.6880 again attract the attention of the market.

AUD/USD technical analysis

The Aussie dollar started a strong upward move after forming a support base near the 0.6870 level against the US Dollar. The AUD/USD pair gained bullish momentum and broke the key 0.6900 resistance level.

AUDUSD-Chart

The pair even climbed above the 0.6920 level and settled well above the 50 hourly simple moving average. It traded as high as 0.6935 and it is currently consolidating gains.

On the downside, there is a strong support forming near the 0.6925 level and the 38.2% Fib retracement level of the last wave from the 0.6911 low to 0.6935 high.

As long as the pair is holding the 0.6925 and 0.6922 support levels, it is likely to resume its upward move. A clear break above the 0.6935 resistance will most likely open the doors for more gains in the near term towards 0.6950 or 0.6960.

By FXOpen

FXOpen is a Forex and Cryptocurrency broker founded in 2005 by a group of traders. With over 10 years of experience, the company has established itself as a major Forex broker that continues to expand rapidly across the globe. FXOpen offers the MT4 and MT5 Forex trading platform with a wide range of trading instruments including 100+ FX, CFDs, Indices and Cryptocurrency markets. FXOpen also provides its own PAMM technology allowing clients to benefit from the strategies of professional traders with a proven track record of successful trading. The FXOpen Group also includes the ASIC regulated FXOpen AU in Perth Australia and the London-based FXOpen UK that is regulated by the FCA.

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