AUD/USD Bounced From a Fibonacci Support Level and Could Reach Fresh Monthly Highs

AUD/USD Current Price: 0.7496

• Firmer gold prices and the positive tone of equities underpinned AUD/USD.
• Australia will publish next Wednesday Q3 inflation data.
• AUD/USD bounced from a Fibonacci support level and could reach fresh monthly highs.

The AUD/USD pair trades near the 0.7500 figure, resuming its advance after correcting lower at the end of the previous week. The pair found support in the better tone of equities, as most Asian and European markets closed in the green. Wall Street also advanced, with the DJIA and the S&P500 reaching fresh record highs.

Firmer gold prices also underpinned AUD/USD, as the bright metal edged firmly higher and trades near the multi-week high posted last Friday at $1,813.80 a troy ounce. Meanwhile, the Australian macroeconomic calendar has been empty, and it has nothing to offer until next Wednesday when the country will release Q3 inflation figures.

AUD/USD short-term technical outlook

The AUD/USD pair has bounced from around the 23.6% retracement of the 0.7169/0.7545 rally at  0.7456 and seems poised to extend its advance. In the daily chart, the 20 SMA keeps advancing below the current level and below the 100 SMA. Technical indicators have resumed their advances well into positive levels after correcting extreme overbought conditions.

The near term picture is neutral, according to the 4-hour chart, although with the risk skewed to the upside. AUD/USD is seesawing around a flat 20 SMA, while the longer ones head firmly higher, far below the current level. In the meantime, technical indicators are directionless, the Momentum around its 100 level and the RSI at 56. The pair could turn lower on a break below 0.7450, although buyers are likely waiting around the 0.7400 figure.

Support levels: 0.7450 0.7400 0.7365  

Resistance levels: 0.7510 0.7550 0.7590

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