The AUD/USD pair built on its intraday ascent and climbed back above the key 0.7500 psychological mark during the first half of the European session. Following the previous day's turnaround from the highest level since July, the AUD/USD pair caught some fresh bids on the last day of the week amid the emergence of fresh selling around the US dollar. Reports that China Evergrande made funds available for a dollar bond coupon eased concerns about a credit crunch in China's real estate sector and boosted investors' sentiment. This, in turn, undermined the safe-haven greenback and acted as a tailwind for the perceived riskier aussie. AUDUSD beat 0.7400/20 for a medium term buy signal targeting 0.7495/99 & 0.7530/35 then within just 9 pips of our profit-taking target of 0.7555/65. Then yesterday we collapsed from the resistance, leaving a bearish engulfing candle for a sell signal.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES : (TECHNICALS)

he AUD/USD 1-hour chart depicts the pair briefly broke below Thursday low (0.7457), but at press time, the pair is at 0.7462, closing to the Friday’s open, but below the 100-simple moving average (SMA) at 0.7476, which could act as resistance.

For AUD/USD sellers, they would need a sustained break below 0.7453, so they could challenge the confluence of the S1 pivot point and the 200-SMA around 0.7433.

On the flip side, buyers will need to reclaim the 100-SMA. In that outcome, a challenge towards the daily pivot point at 0.7489, followed by the  0.7500 figure, is on the cards.

Aussie Dollar On Strong Hawkish Grounds

Oct 23 2021