AUDUSD At Five-Month Highs, Eyes the Resistance at 0.67
AUDUSD trades 0.22% higher at 0.6995 making fresh five-month highs as the selling pressure in US dollar continues. Positive headlines around phase one trade deal between China and the U.S. boosted AUDUSD.
The Aussie dollar also supported by better data from China. The industrial profits in China increased by 5.4% in November after a sharp drop of 9.9% in October. In Australia the unemployment rate dropped to 5.2% beating forecasts of 5.3%. Stronger than expected jobs data might delay the next interest rate cut by the Reserve Bank of Australia.
AUDUSD hits today fresh five-month highs as the pair trades higher for the third consecutive session. Bulls have cleared all the significant daily moving average resistance levels and now targets higher levels. Bulls need to be careful at the current level as the pair today entered the overbought zone. The RSI 14 index current reading stands at 70.37.
The initial resistance for AUDUSD will be met at 0.6998 – 0.6700 the daily top. If the pair breaks above a second wave of bids might join the action targeting the next resistance level at 0.7034 the high from July 27th. The high from July 19th at 0.7081 will provide the next resistance level.
On the downside, intraday support for the pair stands at 0.6977 today’s low. Next support zone will be met at 0.6940 the low from December 27th. The recent bullish momentum might be canceled only if the pair breaks below the 200-day moving average at 0.6900.