The AUD/USD pair pulls back slightly from a fresh one-month high touched earlier this Monday, failing to decisively break out through the 100-day Simple Moving Average (SMA) pivotal resistance.
The Australian dollar reclaimed 70c last week, despite asset managers and large speculators increasing their record gross-short exposure. And with AUD/USD bouncing from a potential head-and-shoulders neckline, it raises the question of whether bearish sentiment has reached an extreme.
AUD/USD's strong rebound last week indicates short term bottoming at 0.6893. With late breach of 0.7035 temporary top, initial bias is back on the upside.
The Australian Dollar finished Friday's session with gains of over 0.22% and the week up by more than 1.20%, with the pair reclaiming the 0.7000 figure and poised to test a confluence of key resistance levels within the 0.7000-0.7100 range. At the time of writing, the AUD/USD trades at 0.7035.
The Australian Dollar has mounted a sharp recovery from critical technical support, with the latest advance marking a meaningful shift in the near-term outlook. AUD/USD is now challenging an important Fibonacci threshold as weekly momentum approaches a potential bullish shift, raising the stakes for today's close.
The Australian Dollar underperforms its major currency peers, except the New Zealand Dollar (NZD), on Thursday. Against the US Dollar (USD), the antipodean is down 0.4% to near the psychological level of 0.7000.
While the stage was set for AUD/USD to breakout of a long-term head-and-shoulders top, bears are yet to have their pound of flesh. A weaker US dollar, hawkish RBA commentary and surging November rate hike expectations have helped the Australian dollar emerge as one of the strongest FX majors this week.
AUDUSD hits double top The Australian dollar (AUDUSD) continued its rally as the pair moved over 100 pips higher. Prices hope to find steady ground above 0.7000 after breaking the previous resistance.
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