AUD/USD (current price: 0.7347)
The Australian Dollar finally rebounded yesterday thanks to the strong bullish move in oil. The bounce against the U.S. Dollar started off the 200-day MA, as we suggested previously. The advance continued today in early trading following the more dovish RBA Meeting Minutes that was published this morning. The pair has quickly gained 100 pips but it’s still down by almost 500 pips, or 7%, since hitting a high in late April above the 0.78 level.
Our assessment: The Aussie might bounce as high as the strong resistance zone near 0.75 if it can break above the 0.7410 level. The short-term trend remains bearish as the cross recently broke out of its previous rising trend channel.
