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Aussie rallied to 15-week high

Market Analysis

AUDUSD, H4

The AUDUSD has rallied to a 15-week high of 0.7739, breaking above a consolidation trend resistance and the February-15 peak at 0.7732. As can be seen, upwards trend has been placed since Christmas, which has propelled the Aussie to top spot in the strongest performers league, presently with a 7.2% gain versus the U.S. buck (which, despite the Fed’s tightening path, is the weakest of the main currencies, perhaps having been helped on its way by Trump’s exchange rate protestations). The market has evidently shaken off today’s sub-forecast Australian capex report for Q4, although the rate of contraction in the gauge decreased and Q3 data were upwardly revised.

The AUDUSD looks overbought on the 1 hr chart, based on short term Stochastic indicator, while the 4 hr and Daily chart suggest this pair could rise further. On the 1 hour chart the pair broke the 30-period moving average earlier today, while it been trading above the important 200 period all week. RSI is high at 61, MACD and Parabolic SAR remains positive. Therefore, higher timeframes might suggest further rise.

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Andria Pichidi

Market Analyst

HotForex

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