AUD/USD is Technically Bullish Buy May Correct Lower Before Resuming Its Advance

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AUD/USD Current Price: 0.7354

• Australian September NAB’s Business Confidence on Tuesday is foreseen at -6.
• Soaring copper prices provided support to the aussie, as the metal added 0.7%.
• AUD/USD is technically bullish buy may correct lower before resuming its advance.  

The AUD/USD pair extended gains to a fresh 4-week high of 0.7372, currently trading in the 0.7350 price zone. The pair has peaked during US trading hours, amid Wall Street opening with gains. As stocks change course, so did the pair, although retaining most of its early gains. Soaring copper prices provided support to the aussie, up 0.7% on Monday, to $8,560 per ton.

The Australian macroeconomic calendar had nothing to offer on Monday but will include September NAB’s Business Confidence on Tuesday, foreseen at -6 from -5 in August. NAB’s Business Conditions are foreseen at 23, improving from the previous 14. The country will also publish HIA New Home Sales for the same month.

AUD/USD short-term technical outlook

The AUD/USD pair trades a handful of pips below the 61.8% retracement of its latest daily slump, measured between 0.7477 and 0.7169. The daily chart suggests that the rally may continue, as technical indicators head firmly higher within positive levels. In the same chart, the pair has extended its advance above a now flat 20 SMA, while the 100 SMA maintains its bearish slope, currently at around 0.7425.

The near-term picture suggests some upward exhaustion, although it is not enough to confirm an upcoming slide. The 4-hour chart shows that the price remains above all of its moving averages, with the 20 SMA heading firmly higher and about to cross above the 200 SMA. However, technical indicators are retreating from intraday highs, holding within positive levels. A corrective decline seems likely on a break below 0.7330, the immediate support level.

Support levels: 0.7330 0.7290 0.7250  

Resistance levels: 0.7370 0.7410 0.7440

Image Sourced from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.